Question

Are the following statements normative or positive? If a statement is normative, change it to a positive statement. a. The government should provide free tuition to all college students. b. An effective way to increase the skills of the workforce is to provide free tuition to all college students. c. The government must provide job training if we are to compete with other countries.

Short answer

If a statement is normative, change it into a positive statement. a) The government should provide free tuition to all college students. b) An effective way to increase the skills of the workforce is to provide free tuition to all college students. c) The government must provide job training if we are to compete with other countries.

Step-by-step solution

Determine if the statement is normative or positive

This statement is expressing a value judgement that the government should take a particular action, so it is a normative statement.

Change the statement to a positive statement

A positive version of the statement could be: "Providing free tuition to all college students would increase the number of students attending college." Statement b: An effective way to increase the skills of the workforce is to provide free tuition to all college students.

Determine if the statement is normative or positive

This statement is making a factual claim about the relationship between free tuition and workforce skills, so it is a positive statement. No changes needed. Statement c: The government must provide job training if we are to compete with other countries.

Determine if the statement is normative or positive

This statement is expressing a value judgement that the government needs to take a specific action, so it is a normative statement.

Change the statement to a positive statement

A positive version of the statement could be: "Providing job training has been shown to improve a country's competitiveness in the global market."

Key concepts

Normative Statements

Normative statements express opinions or value judgments about what ought to be. They often include words like "should," "must," or "ought to."
These statements cannot be tested or proven right or wrong because they are based on personal beliefs or values. For example, saying, "The government should provide free tuition to all college students" is a normative statement. It reflects an opinion about what the government should do.
Even though such statements cannot be objectively tested, they play a crucial role in shaping policies and public debates. They drive discussions on various topics, such as education, healthcare, and taxation.

• Normative statements are not about fact or statistics.
• They often influence policy-making by reflecting personal and societal values.
• Turning a normative statement into a positive one involves eliminating opinion-based words.

Positive Statements

Positive statements, on the other hand, are factual. They describe the world as it is, using data that can be tested and verified.
For example, the statement, "An effective way to increase the skills of the workforce is to provide free tuition to all college students," is positive. It talks about a factual relationship that can be analyzed and verified through research and data.
These statements often serve as the basis for creating theories and models in economics. By focusing on observable and measurable data, positive statements help economists to understand how economies function.

• Positive statements are fact-based and can be tested.
• They provide the foundation for building economic models and theories.
• Transforming a normative statement into a positive one involves focusing on observable facts.

Economic Policy Analysis

Economic policy analysis involves using both normative and positive statements to evaluate the outcomes of policies.
This type of analysis helps in deciding which policies might effectively address economic issues like unemployment, inflation, or education. When analyzing a policy, economists separate value judgments from factual evidence to provide clear recommendations.
For instance, to assess the policy of providing free tuition, economists might look at data on enrollment rates and workforce skills to back or refute positive statements. Meanwhile, debates about whether the policy "ought" to be implemented engage with normative statements.

• Effective policy analysis combines data analysis (positive) with societal goals (normative).
• It helps policymakers understand both the potential outcomes and the underlying values of a policy.
• Economic policy analysis strives to balance factual findings with equitable considerations.