Unemployment rate is unacceptably high. Is this positive economics, normative economics, or art of economics and why
Positive
Are the following workers likely to experience short-term or long-term unemployment? In each case, justify your view
A fruit picker laid off because of floods.
WHAT ARE WELFARE PAYMENTS OR CONSUMER SUBSIDIEZ?
Determining whether a statement is positive economics, normative economics, or an art of economics depends on the nature of the statement and the underlying approach it takes.
Positive economics focuses on objective analysis based on empirical evidence and seeks to describe and explain economic phenomena without making value judgments. Normative economics, on the other hand, deals with subjective judgments and seeks to prescribe what should be done based on personal beliefs or opinions.
In the given statement, "Unemployment rate is unacceptably high," we can analyze it from both perspectives:
1. Positive economics: Evaluating whether the unemployment rate is high or not is a matter of objective analysis. One can examine historical data, statistical trends, and economic indicators to determine the current state of unemployment. This analysis falls under positive economics as it deals with observable facts and doesn't involve personal value judgments.
2. Normative economics: The use of the word "unacceptably" implies a subjective judgment. It suggests that the person making the statement has a certain threshold or ideal level of unemployment in mind, which they believe should be considered acceptable. This introduces normative economics because it involves a personal opinion or value judgment about what the unemployment rate should be.
In this case, the statement contains elements of both positive and normative economics, as it makes an objective observation about the current state of unemployment (positive economics) and expresses a subjective opinion about whether the current rate is acceptable or not (normative economics).
However, it's worth noting that determining whether a statement falls strictly into one category can sometimes be subjective, as there can be elements of subjectivity within objective analysis, and vice versa. Economics is a multifaceted discipline that incorporates various approaches, making it both a science and an art.