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Wize AP Microeconomics Textbook > Economic Concepts

Positive and Normative Economics

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Positive vs Normative Economics

Positive statements are normally used where we have factual evidence and normative statements are more commonly used when everyone may not agree on a particular topic.

Normative Statements

These are value judgments that include an opinion (they are also called subjective statements).

Wize Tip
Look out for the words "should" or "ought." That normally means it is a normative statement

Example: Canadians should pay less in tuition.

Positive Statements

These describe the world as it is and do not include opinions (also called objective statements).

Example: Students in North America on average pay $9000 in tuition fees.

Practice: Positive and Normative Statements

  1. The government should lower the tax rate. This is a
    statement
  2. The government doesn't provide enough help for people on welfare. This is a
    statement
  3. It was too hot yesterday. This is a
    statement
  4. Historically, North American cities that have higher government spending on educational programs generally have lower poverty rates. This is a
    statement