Icebreaker FORUM 2

What is the difference between positive and normative economics?

What is the difference between positive and normative economics?

by Yuewen (Kyo) Ren -
Number of replies: 1

      Positive economics is concerned with “what is”, it is based on objective facts, describes and explains economic phenomena, and can be verified by data and evidence.

     Normative economics, however, focuses on “what should be”, with value judgment and policy direction, which cannot be verified by data alone. Therefore, the former emphasizes objective description, while the later reflects a subjective position.

60 words

In reply to Yuewen (Kyo) Ren

Re: What is the difference between positive and normative economics?

by Shaheer Akram -