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Normative and positive statements

The following table contains statements that provide some analysis of policies that address globalization.

Categorize each statement as positive or normative.

1-In the past decade, U.S. companies have outsourced millions of jobs overseas.
2-Companies that outsource jobs are acting immorally.
3- If the U.S. government were to institute higher tariffs on imports, companies would stop outsourcing jobs.
4-The U.S. government should institute higher tariffs on imports.

I need help in this problem. that what I got: 1-Positive 2- Normative 3- postive 4- Normative

Is that correct?? I'm not sure about part 2 and 3

Respuesta :

Answer:

positive statement

normative statement

positive statement

normative statement

Explanation:

Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.  

For example, an increase in input would lead to a decrease in supply of the good is based on economic theory and facts. An increase in input would increase the cost of production and this would discourage sellers from producing.  

Normative economics is based value judgements, opinions and perspectives. For example, the statement - social welfare spending in Sweden occupies too large a portion of the national budget - is based on opinion. To some the expenditure might be even too small. There is no economic theory that can be used to determine if this expenditure is too large or small

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