Positive economics deals with facts and cause-and-effect, while normative economics is about opinions and what should be done. Positive economics describes how the economy actually works, but normative economics gives suggestions about how it should work. Positive statements can be tested with data to see if they are true, while normative statements cannot be tested because they are based on values and personal judgments.
What is the difference between positive and normative economics?
by Zhongyu (Chris) Wang -
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