Positive Economics vs. Normative Economics

Key Differences

Comparison Chart
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Validity
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Nature

What is Positive Economics?
The positive economics is the branch of economics that is based on facts. The statements made in this type of economics can either be proved true or false, after checking their validation through the scientific techniques. The descriptive type of economics tells the reality or what is happening around with relation to the economics. The positive economics is based upon reports, news, scientific methods, audio/visual proves and surveys. It has the objective-oriented approach which makes it directly related to the issue or matter being addressed. Different decisions and policies are made in compliance with them as they are fact based, and their validity can also be checked. The economic issues are also addressed in the positive economics as it explains the cause and effect relationship between variables. Using positive economics makes sure that better decisions with respect to economic activities are made.
What is Normative Economics?
The normative economics is the branch of economics that is based on opinions. The validity of statements can’t be checked using the scientific method or any other technique. It is prescriptive in nature and it just passes the value judgment made by the individual or even by the group. The normative economics mainly deals with the concepts of ideas that how should the economic activities should be to make the economy stable. It tells ‘what it should be’, on the other hand, the positive economics tells what is happening in the economic world. The normative economics statement can either be based on the opinion, the point of views or merely the estimations. In other words, we can say that the normative economics is about the suggestions to make the economy better. In some cases, if the opinion gets the logical prove through approved techniques it can transform as the positive economics.