Question

Which of the following statements suggest a positive analysis and which a normative analysis? Please explain.

a) The state of Florida should implement price gouging laws to make consumers better off.

b) Tariffs decrease the demand for US made products in China.

c) The government should create laws to make it difficult to operate a monopoly in order to increase consumer surplus.

d) The federal government should make health care mandatory as it would improve overall health

Answer 1

Positive statements describe what was, what is and what would be under the given set of circumstances. All these statements are capable of empirical verification. On the basis of their empirical verification, we can find out the degree of truth in such statements. These statements do not pass any value judgements.

Normative statements describe "what ought to be". Its objective is to determine the norms or aims. These statements pronounce value judgements. These are opinions relating to right or wrong of a particular policy matter, and are always a matter of debate.

a) Normative analysis

b) Positive analysis

c) Normative analysis

d) Normative analysis.