Positive and Normative Analysis

An economist plays two roles: scientist and policy advisor. As scientists, economists explain the world, and as policy advisors they help improve the world. Because these two roles have different goals, they require different types of language. Economists as scientists make positive claims, whereas economists as policy advisors make normative claims.

· Explain the difference between positive and normative analysis.

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· Provide an example of a normative statement or an example of a positive statement from a recent news story.


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