Understanding the distinction between positive and normative statements is crucial in economics and social sciences. Positive statements describe the world as it is, focusing on factual information that can be tested or validated. In contrast, normative statements express opinions or beliefs about how the world should be, often using subjective language.

For instance, the statement "The government should provide health care to all of its citizens" is a normative statement, indicated by the use of the word "should." This suggests a belief about what ought to happen rather than a description of current reality.

Similarly, the assertion "Minimum wage laws are a bad idea because they cause unemployment" also qualifies as a normative statement. It reflects an opinion about minimum wage laws rather than presenting an objective fact.

On the other hand, the statement "Rising gas prices cause people to buy less gas" is a positive statement. It describes a relationship that can be tested: as gas prices increase, it is observable whether or not consumption decreases. This statement does not include subjective language and can be empirically verified.

Another example of a positive statement is "Minimum wage laws cause unemployment." This statement can be tested and analyzed for its truthfulness, focusing on factual outcomes rather than opinions.

Finally, the phrase "The government ought to increase the minimum wage" is a normative statement, as indicated by the word "ought." This reflects a belief about what should be done, rather than a factual claim about the current state of affairs.

In summary, recognizing keywords such as "should," "ought to," "good idea," or "bad idea" can help differentiate between normative and positive statements, enhancing your understanding of economic discussions.