4 differences between positive and normative …

Key Differences Between Positive and Normative Economics

1. Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
2. Positive economics is descriptive, but normative economics is prescriptive.
3. Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
4. The perspective of positive economics is objective while normative economics have a subjective perspective.
5. Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
6. The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
7. Positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.