Question

State the difference between:

(a) positive and normative economics
(b) positive and normative economics statements

Answer 1

(a) Positive and normative economics

-- Positive economic is a branch of economics that is objective and based on data and facts, while normative economics is a branch of economics that is subjective and based on opinions, values and judgement

--Positive economics deals with what is and on contrary normative economics deals with what need to be

-- Positive economic provides a description on economic concern, and on other hand normative economics provides solution for the economic concern, based on value

-- Positive economics is also known as descriptive economics while normative economics is known as policy economics

(b) Positive and normative economics statements

Positive economic statements must be in a position to be tested and proved or disproved. Normative economic statements are opinion based, thus not necessarily can be proved or disproved. Thus positive economic statements can be tested using scientific methods, while normative economics statements cannot be tested because they are based on an opinion of an individual.