[TEA-SEP-25] CIA4U ...

The distinction between positive economics and normative economics primarily lies in their differing research and analytical perspectives. “Positive economics” focuses on “facts,” examining how economic phenomena occur in practice. It relies on data and evidence for analysis and interpretation, and its conclusions can be tested or proven—for example, “raising gasoline prices reduces consumption.” In contrast, “normative economics” focuses on “value judgments,” examining how economic activities ought to be conducted. It often incorporates subjective opinions and policy recommendations, and its validity cannot be proven solely through data. For example, “the government should raise the minimum wage to assist low-income individuals.” Empirical economics answers the question “what is,” while normative economics addresses “what ought to be.”