In economic analysis, a statement is said to be normative if it?
Answer Details
In economic analysis, a statement is said to be normative if it relates to value judgement.
Normative statements are subjective statements that express an opinion or a preference, and they often involve moral, ethical, or political considerations. They are not based on empirical evidence or facts that can be tested scientifically.
For example, a statement such as "the government should provide free healthcare to all citizens" is normative because it expresses a value judgement about what the government should do, rather than a statement about what is currently happening in the economy.
In contrast, positive statements are objective statements that describe the world as it is, and they can be tested using empirical evidence. For example, a statement such as "the unemployment rate in the country is 5%" is a positive statement because it describes the current state of the economy based on empirical evidence.
Therefore, a normative statement in economic analysis is one that expresses a value judgement, not one that is incorrect, can be tested scientifically, or is contradictory.