ECONOMICS AS A SOCIAL SCIENCE
NORMATIVE AND POSITIVE STATEMENTS:-
In studying economics and a range of other subjects it is useful to distinguish between positive and normative statements. An understanding of the difference between the two types of statement helps people to appreciate the scope and limitations of economics.
Positive statements are those that deal only with facts. ‘Hong Kong is now part of China’, ‘General Motors employs x number of workers’, and ‘Jane Smith obtained a grade A in Economics’, are all positive statements. If a disagreement arises over a positive statement it can be settled by looking at the facts and seeing whether or not they support the statement. Positive statements must be either true or false, where the word true’ is taken to mean ‘consistent with facts’.
Normative statements usually include or imply the words ‘ought’ or ‘should’. They reflect people’s moral attitudes and are expressions of what some individual or group thinks ought to be done. ‘Britain should join the single currency’, ‘more aid should be given to developing countries’ and ‘income should be distributed more equally’, are all normative statements. These statements are based on value judgments and express views of what is ‘good’ or ‘bad’, ‘right’ or ‘wrong’. Unlike positive statements, normative statements cannot be verified by looking at the facts. Disagreements about such statements are usually settled by voting on them.
SCIENTIFIC ENQUIRY:-
Scientific enquiry, as the term is generally understood, is confined to positive questions. It deals with those questions which can be verified or falsified by actual observations of the real world (i.e. by checking the facts).
One major objective of science is to develop theor ...