Difference between Positive Economics and Normative Economics with example
Answers
Answered by
1
Positive economics main focus is on the facts and also cause-effect behavioral relationships where economics theories are tested. It further tells us about the description and explanation of the economic phenomenon.
An example would be ' A decrease in the interest rate will discourage people to save'
Normative economics talks about subjectivity and is value based. Normative economic statements are opinion based.
An example would be 'The price of milk should be 7$ not 8$ so that farmers can get better off'
An example would be ' A decrease in the interest rate will discourage people to save'
Normative economics talks about subjectivity and is value based. Normative economic statements are opinion based.
An example would be 'The price of milk should be 7$ not 8$ so that farmers can get better off'
Answered by
1
refer to the attachment
Attachments:
Similar questions