Key terms
- Positive statement
- A positive statement describes the world as it is, and can be tested against evidence, at least in principle.
- Normative statement
- A normative statement describes how the world should be, and rests on values that no evidence can prove true or false.
A positive statement can be tested, and it can turn out false
Positive statements are factual. They may be true or false, and we can test them, at least in principle, by looking at what actually happens. An economist who works out whether the expected benefits of a new rail line exceed its costs is doing positive analysis. A positive claim that the evidence shows to be wrong is still positive: it has been tested and has failed.