Positive statements

• A Positive statements is a statement of fact. It may be right or wrong but its accuracy can be tested appealing to the facts.

  • For example “Unemployment is rising Inflation is 5.4% Economic growth is slowing”

• All of these statements can be tested to see whether or not they are correct

Normative statements.

• Normative statements is a statement of value. i.e. if something is good or bad, ought or ought not to be done

  • For example “The government ought to reduce inflation Increasing the minimum wage would be a good idea households should try to save energy”

• It is important to remember

  • Do not use ‘opinion’ when defining normative statements.

  • For example, ‘I think that increased spending on education would mean more pupils achieving 9s in their GCSEs’. This could be tested.

Positive and normative statements

• Economists play a major role in helping the government devise an economic policy.

• They can only make positive statements when questioned on policy.

• That is to say, they can analyse the consequences of policies, they can say which policy is likely to achieve an aim, BUT they cannot say whether the aims of policy are desirable