what is the difference between positive and normative economy ? explain.

Positive economics

Normative economics

Positive economics deals with facts

Normative economics deals with opinions on what a desirable economy should be.

Positive economics deals with what is

Normative economics deals with what should be

Positive economics is also called descriptive economics

Normative economics is called policy economics.

Positive economic statements can be tested using scientific methods

Normative economics cannot be tested.

 

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thnk u

:)

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examole
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sorry example please for both the types???
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For example NORMATIVE SCIENCE-THE GOVERNMENT SHOULD ORGANISE OUR HEALTH CARE SERVICES . IS A NORMATIVE SCIENCE BECAUSE IT IS A OPINION I.E WHAT OUGHT TO BE .. POSITIVE SCIENCE - THE GOVERNMENT IS SPENDING A LOT OF AMOUNT ON THE HEALTH CARE SERVICES . IS A POSITIVE SCIENCE BECAUSE IT IS A FACT I.E HOW AND WHY..
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Appropriate answer 5 marks

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Example: Positive economics= growth rate is 5%, industrial Output grew by 3% . Normative economics= the unemployment rate should be reduced.

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