what is positive or normative
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- Economists frequently distinguish between 'positive' and 'normative' economics.
- Positive economics is concerned with the development and testing of positive statements about the world that are objective and verifiable.
- Normative statements derive from an opinion or a point of view.
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Economists frequently distinguish between 'positive' and 'normative' economics. Positive economics is concerned with the development and testing of positive statements about the world that are objective and verifiable. Normative statements derive from an opinion or a point of view.
Normative economics focuses on the value of economic fairness, or what the economy "should be" or "ought to be." While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments
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