Question

What is the difference between Positive and Normative Economics? Please provide examples of each and which would you support?

Answer 1

Positive economics	Normative economics
Positive economics is that part of economics, which studies the cause and effect relationship based on data and facts.	Normative economics is that part of economics, which is based up on normative aspects like values, opinions and judgement.
Positive economics establishes cause and effect relationship or causal relationship.	Normative economics tries to provide solution based on value judgement.
Positive economics is descriptive by nature because it not only establishes causal relationship but also clearly describes the economic problems supported by facts.	Normative economics is perspective by nature, because it provides solution to various economic problems based on value judgement.
Example: Due to rise in the price of critical care treatment, there is a decline in demand for critical care treatment by lower middleclass family.	Example: the price of critical care treatment should be controlled or regulated so that a lower middleclass family can afford critical care treatment.