What is the differences between nomative statement and positive statement?
If someone says, "The inflation should be decreasing by the next couple of years." Do we have any proof or facts that we can verify it with? This is only people's opinion, which is a value judgement. Therefore we called it a Normative statement.
Here's another one, "Pensions are lower than fuel bills." In this statement, we can actually verify it with facts, which we can prove the statement by some particular available information. As it we called it a Positive statement.
These 2 words are very important for analysing some economic questions in which we should be clearly understood by what it acually means.
Diseconomies of scale
7 years ago
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