Positive and Normative Statement

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Topic Economics
Subject AP Microeconomics
Last modified September 22, 2010

In the study of economics, it is necessary to truly realize the meaning and differences of positive and normative statements.

Positive Statement
Positive statement is a statement which implies: whether the existence or has been in existence or will form? Truth positive statement can be seen by comparing it with the fact that form.

Essentially positive statement is a statement about the facts that form the society and therefore that the truth can be proved by taking into account the prevailing realities. "If the production of rice decreased the price will go up" and "If the rice is sold to the city more expensive than it sold in the village" are examples of positive statements.

Normative Statement
Normative statement is a statement that implies: what should be a form? So the normative statement is a subjective view or a value judgment. The statement was not put forward opinions about the circumstances which will form but pronounced on what should be written.

Normative statement is sometimes strongly influenced by factors such as non-rational factors of culture, philosophy and religion. Because of its nature, the truth of normative statements can not be proven by looking kepda reality.

Consider the following statement: "The improvement of public welfare should be done by accelerating the accretion of national income" and "Improving public welfare should be done by trying to increment revenues equitably enjoyed by all levels of society."