Answer to Question #310324 in Microeconomics for Ahmed

Question

What is the difference between a positive and a normative statement? Give an example of each.

Answer 1

Positive statements are fact-based, but normative statements are based on opinions. An example of positive economics is, “an increase in tax rates ultimately results in a decrease in total tax revenue” while an example of normative economics is, “unemployment harms an economy more than inflation