State (a) a positive economic statement of your choice, and then (b) a normative cconomic statem

State (a) a positive economic statement of your choice, and...

Key Concepts

Positive Economic Statement

A positive economic statement is an objective and fact-based claim that describes the world as it is. It relies on observable evidence, data, and empirical analysis, and can be tested or verified using scientific methods. Such statements are free from judgments or opinions about what ought to be and focus solely on cause and effect relationships in the economy.

Normative Economic Statement

A normative economic statement, by contrast, reflects a value judgment or opinion about what the economy should be like or what future actions are desirable. It incorporates personal beliefs and ethical considerations, making it inherently subjective and based on individual or societal preferences rather than on objective data. This type of statement is not verifiable solely through empirical evidence because it is rooted in prescriptive recommendations.

Transcript

00:01 Hey everyone, today we're going through problem 6 from chapter 1 of the textbook, which basically asks us to give an example of a positive economic statement, and then give another example of a normative economic statement that relates to the content of the positive economic statement.

00:15 So first and foremost, we need to take the first step, which is identifying the definitions of both these terms and understanding the basic difference.

00:23 So positive economic statements.

00:25 Well, these are factual in nature, and they can be proven.

00:31 To be either true or false.

00:36 There's no gray area.

00:37 Normative statements are basically opinion -based and based on value judgments, and they cannot be proven to be completely true or completely false.

00:54 So there is gray area, and it's more about your opinion.

00:56 All right, so what is an example? well, i'm going to use the example, at least for my positive statement, i'm going to state that's, i'm going to state a fact, which is that the united states spends more money on its military than any other country.

01:30 That is a undisputed fact.

01:32 There are several sources that pack up that statement.

01:36 And yeah.

01:37 So that is a positive statement that is completely factual.

01:41 All right.

01:42 So what is the normative statement? well, kind of taking an opinion on this...

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