Question

Compare positive economics and normative economics?

Answer 1

Positive Economics	Normative Economics
1. An increase in money supply implies a price-rise is an economy.	1. Inflation is better than deflation.
2. As the irrigation facilities and application of chemical fertilizers expand, the production of food grains increases.	2. More production of luxury goods is not good for a less-developed country.
3. An increase in the birth rate and a decrease in the death rate reflect the rate of growth of population.	3. Inequalities in the distribution of wealth and incomes should be reduced.