What Is a Normative Statement?

A normative statement is highly speculative. It assigns a value judgment to a situation and is not necessarily based on fact. Normative statements are the basis of normative economics.
  1. Normative vs. Positive

    • A normative statement expresses an opinion in terms of the hypothetical. A normative statement is typically characterized by words like "would," "could" or "should." An example of a normative statement is "The president should receive a higher salary." A positive statement is the stark opposite of a normative statement. A positive statement is not value charged; it is stated factually. An example of a positive statement is "The president receives the salary he does because he is not responsible for any living expenses."

    Normative Economics

    • Normative economics is economics through a lens of "what should be." In other words, value is infused into the study of economics from a sociopolitical standpoint.

    Application

    • There is often overlap in positive and normative elements in economics. The University of North Carolina suggests that many economists would agree that the death penalty serves as a crime deterrent, though many -- and some of the same -- economists would suggest that the death penalty should not be administered.

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