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opportunity cost and a trade off

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Economists who work for the government are often called on to make policy recommendations. Why do you think it is important for the public to be able to differentiate normative statements from positive statements in these recommendations?

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An opportunity cost and a trade off is assessed.

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Remember that positive statements are things like "if we cut state taxes by 2% household consumption will increase by 3.4% and our state economic output will increase by 2.7%."

Normative statements and question are based on values (what we should or ought to do). "We should decrease taxes" "Should we decrease taxes?"

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