Question

Explain the concepts of positive and normative economics with illustration

Answer 1

Answer:

Positive Economics refers to a science which is based on data and facts. ... Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments. The perspective of positive economics is objective while normative economics have a subjective perspective.

Answer 2

Answer:

Normative economics is subjective and value-based, originating from personal perspectives, feelings, or opinions involved in the decision-making process. ... An example of a normative economic statement is: "The government should provide basic healthcare to all citizens."