Question

Difference between positive economics and normative economics

Answer 1

Explanation:

Positive Economics

Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economics theories.

Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.

Here's an example of a positive economic statement: "Government-provided healthcare increases public expenditures." This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.

Normative Economics

Normative economics focuses on the ideological, opinion-oriented, prescriptive, value judgments, and "what should be" statements aimed toward economic development, investment projects, and scenarios. Its goal is to summarize people's desirability (or the lack thereof) to various economic developments, situations, and programs by asking or quoting what should happen or what ought to be.

Normative economics is subjective and value-based, originating from personal perspectives, feelings, or opinions involved in the decision-making process. Normative economics statements are rigid and prescriptive in nature. They often sound political or authoritarian, which is why this economic branch is also called "what should be" or "what ought to be" economics.

An example of a normative economic statement is: "The government should provide basic healthcare to all citizens." As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what "should" be.

Answer 2

$\huge{\boxed{\underline{\underline{\mathbb{\green{Positive}}}}}}$

→ Positive economics deals with economic issue related to past present or future it deals with that economic situation which can be studied by using facts and figures.

$\huge{\boxed{\underline{\underline{\mathbb{\red{Normative}}}}}}$

→ Normative economics is the economics of what ought to be it deals with the opinions of economist related to economic issues or economic problems.

_______________________

$\huge{\boxed{\underline{\underline{\mathbb{\red{Difference}}}}}}$

→ 1 .

✍️positive economics deal with economic issue related to past present and future.

✍️normative economics deals with opinions of economist related to economic issues or problems.

→ 2 .

✍️ statements of positive economics related to what was what is and what would be.

✍️ statements of normative economics related to what ought to be

→ 3.

✍️ statement of positive economics are not necessarily the statements of truth they may be true or false.

✍️ normative statements cannot be terms as true or false the statement involved value judgements.

→ 4.

✍️ in positive economy facts and figures are verifiable for truth.

✍️ normative statements are not verify able at all.