Question

Normative and positive statements.

Answer 1

Answer:

a. positive

b. normative

c. positive

d. normative

Explanation:

Note that a normative statement as used in economics refers to a view of what should be done, or how things or policies should be or not be. While the Positive statement gives a point blank description of what the state of things are.

a. It is a fact of course that in the past decades U.S. companies have outsourced millions of job overseas, thus this is a positive (descriptive) statement.

b. By saying companies that outsource jobs are acting immorally indicates a normative or judgemental view of what is morally right.

c. This statement is a fact, because such actions is in line with economic theory; in effect would stop outsourcing jobs.

d. This is rather a view of what should be done. Which clearly indicates the statement as normative.