Normative and positive statements. The following table contains statements that provide some analysis of policies that address globalization.
Categorize each of these statements as either positive or normative.
Statement Positive Normative
a. In the past decades, U. S. companies have outsourced
millions of job overseas.
b. Companies that outsource jobs are acting immorally.
c. If the U. S. government were to institute higher tariffs on
imports, companies would stop outsourcing jobs.
d. The U. S. government should institute higher tariffs on imports.

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.

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