Distinguish between Positive and Normative Economics.

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answered Aug 23, 2019 by Risub (59.7k points)
selected Aug 23, 2019 by faiz

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Difference between Positive and Normative Economics

Sl. No	Positive Economics	Normative Economics
1	Positive Economics deals with the economic problem as they are and how they are actually solved.	Normative Economics is suggestive in nature. It examines the economic events from moral angle.
2	This is generally relate to ‘what is’, ‘what was’ and ‘what will be’ under given circumstances.	This is generally relate to ‘what ought to be’ or ‘what should be’ under given circumstances.
3	This deals with realistic situation.	This deals with idealistic situation
4	These statements can be empirically verified as they are based on fact.	These statements cannot be empirically verified as they are not based on fact.
5	E.g- There is poverty in India.	E.g.- Poverty in India should be reduced.