Question

Distinguish between positive and normative economics

Answer 1

Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. Normative economicstatements are opinion based, so they cannot be proved or disproved.

Answer 2

Answer:

Positive economics talks about things that “are”. They are facts. They can be verifiable. You can prove it or disprove it. You can test it. And you can find out whether these statements mentioned under positive economics are true or untrue.

But normative economics is fiction. They aren’t facts; rather they are opinions of economists who tell us what they think. It can be true for some and false for some. And these statements mentioned under normative economics aren’t verifiable. They can’t be tested either.