1.1.2 Positive and Normative Statements (Micro)

POSITIVE STATEMENTS

Are objective statements that can be tested and evaluated based on empirical evidence and verifiable data. They don’t express value judgements or opinions.

NORMATIVE STATEMENT

Are subjective statements, they carry one or more value judgements about what ought to be (so more of an opinion). Not testable through empirical analysis alone.

POSITIVE STATEMENT EXAMPLE

An increase in the UK minimum wage will lead to higher unemployement among low-skilled worker --> its a fact, and you can test it.

NORMATIVE STATEMENT EXAMPLE

 Taxes to high income earners should be raised to reduce income equality, someone giving their opinion 'should' you cant test it as different people will have different opinions.