Contrast positive and normative economics. How can economists carry out normative analysis?

Contrast positive and normative economics. How can economists carry out normative analysis?

Expert Solution

----> Key differences:-- The biggest difference between positive and normative economics is the former one is based on facts and the latter one is based on values, judgments, and opinions. The statements under positive economics can be tested or verified. That means the statements can be either true or false. The statements under normative economics, on the other hand, are opinions and recommendations which can’t be verified until they’re acted upon first. The statements under positive economics are objective in nature. The statements under normative economics are subjective in nature. The statements under positive economics focus on cause and effect relationships. On the other hand, the statements under normative economics concentrate on what can work and why. Both economics is important because, without one, another doesn’t make sense.

Rahul Sunny answered 2 years ago

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