Difference between Positive Economics and Normative Economics

Nov 30 -0001

Distinguish, differentiate, compare and explain what is the difference between Positive Economics and Normative Economics. Comparison and Differences.

Differences between Positive Economics and Normative Economics

S.No.	Basis of difference	Positive Economics	Normative Economics
1	Meaning	Studies with what is or how the economic problem are originally solved.	Studies with what ought or how the economic problem should be solved.
2	Validity	It can be verified with original data.	It cannot be verified with original data.
3	Aim	It aims to provide original description of an economic activity.	It aims to determine the principles.
4	Suggestive	It is based on set of collected facts.	It is based on opinion of the individual.
5	Example	Prices and inequalities of income level in an economy.	Government should generate more employment opportunities.