Difference Between Positive Economics And Normative Economics
The main dissimilarities or difference between positive and normative economics can be pointed out as follows:
1. Definition
Positive Economics: Branch of economics concerned with the analysis of statistics and facts in scientific manner
Normative Economics: Branch of economics concerned with the opinions and personal belief and judgment.
2. Based On
Positive Economics: It is based on the facts and statistical data
Normative Economics: It is based on the personal belief
3. Nature
Positive Economics: Objective
Normative Economics: Subjective
4. Verification
Positive Economics: It can be proved or verified
Normative Economics: It cannot be proved or verified
5. Dependency
Positive Economics: It is an independence analysis of facts and statistics
Normative Economics: It depends upon the positive economics
Also Read:
Also Read:
6. Study
Positive Economics: Study of cause and effect
Normative Economics: Study of outcome
Positive Vs Normative Economics (Comparison Chart)
I hope this post is helpful to understand the difference between positive economics and normative economics and to make comparison between them.
Positive Vs Normative Economics (Comparison Chart)
Basis For Difference
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Positive Economics
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Normative Economics
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Introduction
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Branch of economics concerned with statistical data and facts
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Branch of economics concerned with personal belief and judgement
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Based On
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Facts, data and statistics
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Opinions, beliefs and judgement
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Nature
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Objective
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Subjective
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Verification
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Possible
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Not possible
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Dependency
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Does not depend on normative economics
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Depends upon positive economics
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Study Of
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Cause and effect
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Outcome
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I hope this post is helpful to understand the difference between positive economics and normative economics and to make comparison between them.
