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Normative statement

What normative statement means in economics, with an example and a question to test yourself.

Definition
Normative statement
A normative statement describes how the world should be, and rests on values that no evidence can prove true or false.
Not to be confused with: Positive statement
A positive statement describes the world as it is, and can be tested against evidence, at least in principle.
Test yourself

What is the difference between normative statement and positive statement?

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