Question

Identify and discuss the nature of the following newspaper reports in terms of positive or normative economic analysis:
(i) "India jumped 23 points in the World Bank's ease of doing business index to 77^th place, highest in 2 years." – The Economic Times
(ii) "Government should further liberalise the business rules." – The Economic Times

Answer 1

(i) The given statement is positive in nature. This is because positive Statements are the factual statements and describe what was, what is and what would be. These statements can be tested, proven or disproven. These statements do not involve any personal value judgment. Since, the given statement is verifiable in nature, therefore, it is positive statement.

(ii) The given statement is normative in nature. This is because normative Statements describe what should be or what ought to be. These statements cannot be tested and verified. Unlike positive statements, normative statements involve personal value judgments. Usually, these statements are debatable in nature. Since, the given statement about government is opinion based statement, therefore it is normative in nature.