How can you tell the difference between a positive and a normative statement?

A positive statement is a statement that can be supported or refuted by evidence. For example, 'VAT is rising' is a statement that can be proved by comparing the tax rate from previous years to the current year. However, a normative statement is a value judgement. This means that they are subjective and are based on an opinion rather than actual evidence. These type of statements tend to include words like 'should', 'could', and 'unfair'. 

AT

Related Economics A Level answers

All answers ▸

What are public goods and how do they lead to the 'free-rider' problem?


Explain what is meant by the rate of inflation and  analyse the main causes of inflation


Can firms in a perfectly competitive market make supernormal profits?


A new technology revolutionises (e.g. the internet). How will the following changes affect the national economy?