Explain how economists use positive and normative statements.

Economists use positive statements to describe factual situations and normative statements to express value-based opinions.

Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect behavioural relationships and includes the development and testing of economics theories. An example of a positive economic statement is "If the price of iPhones falls, the quantity demanded will increase." This statement is based on the law of demand, which is a well-established economic theory. Economists use positive statements to understand and explain the mechanics of the economy. These statements can be tested and proven true or false using data.

On the other hand, normative economics expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be. It deals with "what should be" or "what ought to be" rather than "what is". For instance, a normative statement might be "The government should provide basic healthcare to all citizens." This statement is based on a value judgment about what policy the government ought to implement. It cannot be tested or proven true or false because it is based on individual or societal values and beliefs.

Economists use normative statements to express opinions and advocate for certain economic policies. These statements are often used in the realm of public policy, where economists advise governments on the potential effects of their decisions. While positive economics is objective and based on facts, normative economics is subjective and based on opinions.

In summary, economists use both positive and normative statements in their work. Positive statements help them understand the world as it is, while normative statements help them envision the world as it could be. Both types of statements are essential for a comprehensive understanding of economics.