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Economics glossary · The economic problem

Positive statement

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

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

Can you think of one positive and one normative statement about the same policy?

Test yourself

What is the difference between positive statement and normative statement?

Learn it properly: the module

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