Positive Economics

In Positive Economics, statements are based on data, fact, and the way things are. There shouldn’t be any controversy over positive statements. Although the fact can be correct or even incorrect, it must be able to be tested. We can test a statement by checking it against the facts.  

• Positive statement is a statement about how the world is
• It is factual
• Positive statements: claims that attempt to describe the world as it is

Here are some examples:

• An increase in the minimum wage will cause more teenage unemployment.
• An increase in the gas prices will reduce the traffic on the highways.
• The New Zealand economy now has a lower unemployment rate than the United States
  

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