☰   Related Articles

Development Planning

Development Planning in Nepal

Quantitative Analysis In Economics

Quantitative Analysis in Economics

Difference Between Positive and Normative Economics

As we know that economics is a science and positive and normative economics are the two different aspects of economics. Positive economics studies the real nature of the subject and normative economics studies the facts not as they are but as they ought to be. So, there are several differences between positive and normative economics which are as follows:-

Positive economics Normative economics
1. Classical and modern economists describe economics as a positive science. 1. Neo-classical economists describe economics as normative economics.
2. Positive economics studies what is. 2. Normative economics studies what ought to be.
3. Statements can be empirically verified. 3. Statements may or may not be verified.
4. It is universal and value does not differ from person to person. 4. It is related to personal belief and value judgment and may differ from person to person
5. It depends upon scientific logic or facts. 5. It depends upon ethical logic or values.
6. It is objective and quantitative in nature. 6. It is subjective and descriptive in nature.
7. It studies the cause and effect relationship. 7. It studies the outcome which is right or wrong and suggests what should be.
8. It deals with how economic problems are solved. 8. It deals with how economic problems should be solved.
9. The positive analysis is independent of normative analysis. 9. The normative analysis depends upon positive analysis.
10. According to Keynesians,” A positive science may be defined as a body of systematized knowledge concerning what is. 10. According to Keynesians, “A normative science is a body of systematized knowledge relating to the criteria of what ought to be.