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DefinitionEdit

Positive statements (as opposed to normative statements) are based on facts or evidence, rather than opinion or subjective viewpoints. These statements should be backed up by the presenter because they are able to be proved or disproved using a scientific approach.

Positive statements try to describe how the world (or economy) works and the ways businesses make their choices and decisions.

Positive economics is the branch of economics that concerns the description and explanation of economic phenomena (Wong, 1987, p. 920). It focuses on facts and cause-and-effect relationships and includes the devellopment and testing of economics theories. Earlier terms were value-free economics and its German counterpart wertfrei economics. These terms were challenged as "persuasive" rather than descriptive.

Positive economics can become problematic when it is politized. For example the unemployment rate may be veiwed as a positive number, however, different methods lead to different numbers making it impossible to have an objective number.

ExamplesEdit

Paper is made primarily from wood pulp.

Ipods are products sold by Apple Computers, Inc.

2+2=4

China has a banking system.

Thunder occurs after a lightning strike.

The deeper the pool, the taller you have to be to stand in the water and keep your nose above the water.

Some Toyota cars have accelerator problems.

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