What is the difference between normative, positive and general statement?

Dear Student,

Positive economics is one of the streams of economics. The main focus of Positive economics is on the description, quantification, and explanation of economic developments, expectations. It comprises of and trusts on objective data analysis, relevant facts, and associated figures. Positive economics helps to establish cause and effect relationships which can help in the analysis and testing of economic theories.

The objective of Positive economics is based on facts in which the statements are precise, descriptive, and clearly measurable. These statements of positive economics can be measured against tangible evidence or historical instances or examples. There are no such examples of approval and disapproval in positive economics.

 

Normative economics is economics that mainly focuses on the ideological, opinion-oriented, prescriptive, value judgments, and "what should be" statements focuses on economic development, involve investment projects, and scenarios. 

In other words, we can say that normative economics is subjective and based on value, which is originated from personal perspectives, feelings, or personal opinions involved in the process of decision making. Normative economics statements are more rigid and prescriptive in nature as a comparison of positive economics. 


Regards,

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