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Positive statements are descriptive. They make a claim about how the world is. A second type of statement ... is normative. Normative statements are prescriptive. They make a claim about how the world ought to be.

A key difference between positive and normative statements is how we judge their validity.



People face tradeoffs. Economist are aware that tradeoffs are involved in most policy decisions. A policy might increase efficiency at the cost of equity. It might help future generations but hurt current generations.