Difference between positive economics and normative economics
Positive and Normative Economics
| Basis | Positive Economics | Normative economics |
|---|---|---|
| Meaning | Studies with what is or how the economic problem are originally solved. | Studies with what ought or how the economic problem should be solved. |
| Validity | It can be verified with original data. | It cannot be verified with original data. |
| Aim | It aims to provide original description of an economic activity. | It aims to determine the principles. |
| Suggestive | It is based on set of collected facts. | It is based on opinion of the individual. |
| Example | Prices and inequalities of income level in an economy. | Government should generate more employment opportunities. |