Positive & Normative Statements Homework: Explain the difference between positive and normative statements using examples from a current article of your choice.

Why Do Economists Disagree? Different opinions about who should be included in economic statistics Technical, cultural, & social changes affect behaviour and its interpretation Views differ on what policies should be carried out to affect the economy in the desired way

Positive v. Normative Statements Positive Statements “statements of fact that can be proven using relevant data” - disagreements are settled by looking at the data Growth in the economy is falling. Normative Statements “value judgements that involve opinion and cannot be proved right or wrong” - disagreements are settled by votes More aid should go to developing countries.

Positive v Normative Statements Read this article and highlight the positive statements in red and normative statements in green.

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