Question

Which of the following is a positive statement? Which is a normative statement?

a. Society should take measures to prevent people from engaging in dangerous personal behavior.

b. People who engage in dangerous personal behavior impose higher costs on society through higher medical costs.

Short answer

1. Normative statement.
2. Positive statement.

Step-by-step solution

Normative economics

Normative economics involves the analysis stating how the world should work.

Normative economics is about prescription and inevitably involves value judgments.

Thus, the statement that suggests the right kind of behavior for people is normative.

Positive economics

Positive economics analyzes, answering questions about how the world works with definite right and wrong answers.

Positive economics is about description. It often involves making forecasts.

Thus, the statement implying that dangerous personal behavior imposes higher costs becomes a fact that can be proven using data and therefore is a positive statement.