Normative Versus Positive Statements

What is Normative

• statement about reality

• reflects someone's opinion

• Economic theory

• none

What is positive

• statement about reality

• reflects some's opinion

• Disagreement government

• Economic policy

McDonald's employee wage $7.25 is a example

• Normative (opinion)

• Positive (fact)

• economic theory

• Average wage

McDonalds employee went raise wage, this is a example

• Normative (opinion)

• Positive (fact)

• crisis wage

• McDonald's wage problem

Reading Information is a example:

• Normative Statement

• Positive Statement

• assumptions

• Rational Self-Interst