Question

what is the difference between positive and normative economy ? explain.

Answer 1

Positive economics

Normative economics

Positive economics deals with facts

Normative economics deals with opinions on what a desirable economy should be.

Positive economics deals with what is

Normative economics deals with what should be

Positive economics is also called descriptive economics

Normative economics is called policy economics.

Positive economic statements can be tested using scientific methods

Normative economics cannot be tested.

Hope it helps you buddy..

Answer 2

HI FRIEND

POSITIVE ECONOMY : -
> Positive economy is objective and fact based.

> Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved.


NORMATIVE ECONOMY : -
>Normative economics is subjective and value based.

>Normative economic statements are opinion based, so they cannot be proved or disproved.


HOPE IT HELPS