Whenever you are reading articles on current affairs it is important to be able to distinguish between objective and subjective statements
What are positive statements?
Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence. Positive economics deals with objective explanation and the testing and rejection of theories. For example:
What are Normative Statements?
A value judgement is a subjective statement of opinion rather than a fact that can be tested by looking at the available evidence
Normative statements are subjective statements – i.e. they carry value judgments. For example:
Focusing on the evidence is called adopting an empirical approach – evidence-based work is becoming more and more important in shaping different government policies and how much funding to give to each.
Most economic decisions and policy are influenced by value judgements, which vary from person to person, resulting in fierce debate between competing political parties.
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