A positive economic statement is a statement about the economy that is factual and objective. Those statements can be tested with the assistance of available evidence.


Positive economics is referred to the branch of economy that focuses on the analysis of objective information. In other words, positive economics represents such judgments as a description and explanation of economic flows, developments, and programs. Consequently, a positive economic statement is based on facts and can be measured according to the existing data.

For instance, ‘increasing minimum wages will lead to higher productivity among employees and reduce turnover rates’ is a positive economic statement. It offers fact-based information, the truthfulness of which can be measured with the help of the information within the economy, such as the connection between minimum wage fluctuations and workers’ productivity.

Another example of a positive economic statement is ‘the increase in tax on liquor will lead to a decrease in profit of the liquor manufacturers.’ This information also can be tested with the help of financial ratio analysis.

It is a common belief that economists disagree in many cases. Therefore, positive economic statements are often compared to normative economic statements. The difference in normative economics is that it focuses on judgments based on opinions, describing what should and can be done in the field of economic development.

Thus, individuals’ perspectives lead to normative economic statements that are subjective. The example of this type of statement is, ‘the government should increase the minimum wage to reduce the level of poverty within the country.’ One can see that this information is not based on evidence and is presented in the form of an opinion-based suggestion. In such a way, the easiest way to differentiate positive and normative economic statements is to determine whether it is objective or subjective.