Positive economy statement versus normative economy statement.

Positive economy statement versus normative economy statement.

i. Positive economy statement is a statement which based on facts and not value judgement. Can be tested and verified.

Example: Ethiopia is the poorest nation in the world.

ii. Normative economy statement is a statement which is bases on value judgement and on personal opinion. Cannot be tested.

Example: The government of Ethiopia is very inefficient.