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Positive statement

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Title: Positive statement  
Author: World Heritage Encyclopedia
Language: English
Subject: Normative, Reason (argument), Decision theory, Strange Cousins from the West, The Moon is made of green cheese
Collection: Economics Terminology, Statements
Publisher: World Heritage Encyclopedia

Positive statement

In economics and philosophy, a positive statement concerns what "is", "was", or "will be", and contains no indication of approval or disapproval (what should be). Positive statement is based on empirical evidence. For examples, "An increse in taxiation on cars will result in fewer cars being sold.", "A fall in supply of petrol will lead to an increase in its price." and "An increase in tourist number in Thailand will create more employment. However, positive statement can be factually incorrect: "The moon is made of green cheese" is empirically false, but is still a positive statement, as it is a statement about what is, not what should be.

Positive statements and nomative statements

It is useful now to make a distinction between positive and normative economics.Economics is a social science. As such it has developed through using positive analysis that is devoid of any value judgements. Positive statement is based on empirical evidence, it can be tested and no value judgements are involved. When values or opnions come into the analysis, then this is the relam of normative economics, which is subjective about what will happen.

Positive statements are widely use to describe something measurable, such as output of a company, or the rate of inflation in a company. And it is mainly used in explanations of theories and concepts. Normative statements are less certain, it is more likely to be used in policy-making or solutions of economic problems.

See also


  • Economae: An Encyclopedia

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