Chapter- What is economics?
Whenever we talk about something, at least in a political issue, or even when we are usually talking we use 2 types of statements, 1- Normative 2-Positive, well then, what are these 2 types of statements we make, how will this affect in economics or business, or even our daily lives?
Normative
A normative statement is an opinion made by someone, if someone says it is bad or it is wrong, well it is his opinion, for example:- "The world is suffering because of the hate we showed to the government", This is a normative statement, because all you can do is blindly believe it, there is no way we can test it, how will we test the hatred we showed to the government.
Positive
In politics and business
In politics and business, you can't make any one of these statements, instead, you need to mix them, because you can't be sure nor can you let the opposing one take his lead, so you state while half of each of these statements, which makes it a full statement. For example:- "Providing everyone with access to high-quality healthcare leads to a healthier and more productive society, but increasing government spending to achieve this might be politically unpopular."
This statement:
Normative: It expresses the value judgment that universal healthcare is desirable because it leads to positive outcomes.
Positive: It states the factual claim that access to healthcare leads to a healthier and more productive society. However, it doesn't claim this is always true or the only benefit.
Mixture: It acknowledges the potential negative consequence of achieving the desired outcome (political unpopularity).