What are the difference between positive economics and normative economics? - Biz Stack

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Monday, November 20, 2017

What are the difference between positive economics and normative economics?

  
         The differences between positive economics and normative economics are given below:


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       POSITIVE ECONOMICS.
     NORMATIVE ECONOMICS.
1.
Positive economics is based on data and facts.
Normative economics is based on opinions and values.
2.
It is based on what actually is.
It is based on what ought to be.
3.
Statements can be tested or proved.
Statements cannot be tested.
4.
Describes economic issues.
Provides solution for economic issues based on values.
5.
It depends on scientific logic and facts.
It depends on ethical logic and value.
6.
It deals with how economic problems are solved.
It deals with how economic problem should be solved.
7.
Positive analysis is independent of normative analysis.
Normative analysis depends upon positive analysis.

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