Question

whic

9. Define positive economics, normative econom- relate to one another?

Answer 1

ans 9=Economics is a science & also an art. But which kind of science is the question here, that is positive / normative? Positive economics is linked to the analysis which is restricted to cause & impact relation. On the other hand, normative economics seeks to examine actual economic events from the moral / ethical viewpoint. Its utilized to judge whether the economic occurrences are desirable or not. Whereas Positive economics is based upon facts regarding the economy. Normative economics is based upon value judgement. Most of the persons suppose that the statements which are usually accepted are a fact but in actuality, they are valued. By, understanding the distinction between positive economics & normative economics, we can learn about how the economy functions and to what extent the policy makers are taking apt decisions. We can state that these 2 branches aren’t contrary but complementary to one another, & they must be closely associated with one another. While laying down theories/ laws, economics should be considered as a positive science, when it comes to practical application, it should be considered as a normative science