Differentiate between positive and normative economics using examples.

Question

Quizplus · Accepted Answer

The Answer is Positive economics is analysis that generates objective descriptions or predictions about the world that can be verified with data.It is analysis that describes what people actually do."A 5 percent fall in the unemployment rate will lead to a 2 percent increase in the inflation rate" is an example of a positive economic statement.In contrast,normative economics is analysis that prescribes what an individual or society ought to do.It is subjective and depends on personal preferences,tastes,attitudes,feelings,or ethical judgments."Pollution in developing countries is one of the biggest global environmental problems" is an example of a normative economic statement.

Differentiate Between Positive and Normative Economics Using Examples