Positive and normative statements explained

In economics and philosophy, a positive statement (or descriptive statement) concerns what "is"; this is contrasted with normative statements (or prescriptive statements), which express a normative judgment about a proposition. Positive statements are the opposite of normative statements: whereas the former is meant to describe the world as it is, the latter is meant to talk about the world as it should be.[1]

Positive and normative statements are often applied in economics to distinguish between the explanation of economic phenomena and normative evaluation of economic policy.

Example

The statement "This bill recently became law" is a positive statement. It states that a certain piece of legislation had recently become law. A normative statement can be spawned from this by asserting a judgment about this law. For example, someone who opposes the law may proclaim "this law should be repealed", which is a normative statement.

See also

References

Notes and References

  1. Web site: Normative Economics . dead . https://web.archive.org/web/20071223145458/http://www.businessdictionary.com/definition/normative-economics.html . 23 December 2007 . 9 October 2014 . Business Dictionary.