Difference between Positive Economics and Normative Economics





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.


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Difference between Normative Economics vs Positive Economics

Positive Economics vs Normative Economics

Differences between Normative Economics vs Positive Economics

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