Positive vs normative

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1. Positive Economics Vs Normative Economics

2. Positive economics  is related to the analysis which is limited to cause and effect relationship . Positive economics describes and explains various economic phenomena or the "what is" scenario 2 Positive Economics

3. If the price of fish were higher, people will buy less Examples of Positive Economics 1

4. Normative economics Normative economics focuses on the value of economic fairness, or what the economy "should be" or "ought to be.“ Normative economics  aims at examining real economic events from the moral and ethical point of view. It is used to judge whether the economic events are GOOD or BAD. 4

5. Example of Normative Economics people who earn large income ought to pay more income tax than people who earn low income’ is a normative statement. Normative statements reflect people’s subjective value judgments of what is good or bad. 5

6. Difference Between Positive and Normative Economics . 6

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