Question

Difference between positive and normative economics with examples

Answer 1

Answer:

Positive economic:

1.It deals with what is or how the economic problem are actually solved.

2. It can be verified with actual data.

3. Examples : Price in indian economy are constantly rising

Normative economic:

1. It deals with ought to be or how the economic problem should be solved.

2. It cannot be verified with actual data.

3. Example: India should take steps to control rising prices.