{"id":5844,"date":"2016-07-19T18:00:46","date_gmt":"2016-07-19T18:00:46","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/macroeconomics\/?post_type=chapter&p=5844"},"modified":"2016-08-02T16:25:50","modified_gmt":"2016-08-02T16:25:50","slug":"reading-positive-and-normative-statements","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/chapter\/reading-positive-and-normative-statements\/","title":{"raw":"Reading: Positive and Normative Statements","rendered":"Reading: Positive and Normative Statements"},"content":{"raw":"\"Photo<\/a>\r\n\r\nEconomics seeks to describe economic behavior as it actually exists, and it relies on a distinction between positive statements<\/strong>, which describe the world as it is, and normative statements<\/strong>, which describe how the world should be.<\/span>\r\n

Positive Statements<\/h2>\r\nTwo kinds of assertions in economics can be subjected to testing. One is\u00a0the hypothesis. Another testable assertion is a statement of fact, such as \"It's raining,\" or \"Microsoft is the largest producer of computer operating systems in the world.\" Like hypotheses, such assertions can be shown to be correct or incorrect. A statement of fact or a hypothesis is a positive statement<\/span>.\r\n

Normative Statements<\/h2>\r\nAlthough people often disagree about positive statements, such disagreements can ultimately be resolved through investigation. There is another category of assertions, however, for which investigation can never resolve differences. A normative statement<\/span> is one that makes a value judgment. Such a judgment is the opinion of the speaker; no one can \"prove\" that the statement is or is not correct. Here are some examples of normative statements in economics:\r\n