Distance between positive and normative economics?

Question

Answer

Normative economics focuses on the value of economic fairness, or what the economy 'should be' or 'ought to be.' While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.

Answer

Positive me lyany ka kaam karty hai or os ne dyny ka yaani aana or jaana

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The biggest difference is the former one is based on facts and the latter one is based on values, judgments, and opinions. The statements under positive economics can be tested or verified. ... The statements under normative economics are subjective in nature.

Answer

Distance between Positive and Normative Economics

Positive and normative economics are two distinct branches of economics that differ in terms of their objectives, methods, and approaches. While positive economics focuses on explaining and predicting economic phenomena objectively, normative economics aims to prescribe what should be done to achieve certain economic goals based on value judgments. Let's delve into the details of the differences between these two branches.

Positive Economics
Positive economics is concerned with the scientific study of economic behavior and the development of economic theories and models. It seeks to understand how the economy functions, explain economic phenomena, and make predictions based on empirical evidence. Here are some key points about positive economics:

1. Objective Analysis: Positive economics relies on objective analysis of facts and data to understand economic behavior and formulate theories.

2. Descriptive Statements: It focuses on descriptive statements that describe how the economy operates and how individuals, firms, and governments make economic decisions.

3. Value-Free: Positive economics strives to be value-free and unbiased, avoiding value judgments or opinions.

4. Testability: Positive economic theories can be tested and verified through empirical observation and data analysis.

5. Economic Policy Analysis: Positive economics plays a crucial role in informing policymakers about the potential consequences of different policy options.

Normative Economics
Normative economics is concerned with the application of ethical or value judgments to economic decision-making. It involves making recommendations or prescribing what actions should be taken to achieve particular economic outcomes. Here are some key points about normative economics:

1. Subjective Analysis: Normative economics involves subjective analysis that incorporates value judgments and opinions about what ought to be done.

2. Prescriptive Statements: It focuses on prescriptive statements that provide recommendations on how economic policies should be designed and implemented.

3. Value-Based: Normative economics is inherently value-based, as it involves personal preferences and societal goals that may vary among individuals or groups.

4. Not Testable: Normative statements cannot be empirically tested or proven right or wrong since they are based on subjective judgments.

5. Ethical Considerations: Normative economics takes into account ethical considerations and aims to address issues such as income inequality, poverty, and social justice.

Conclusion
In summary, positive and normative economics differ in their objectives, methods, and approaches. Positive economics focuses on explaining and predicting economic phenomena based on objective analysis and empirical evidence, while normative economics involves making value-based recommendations on how economic policies should be formulated to achieve desired outcomes. While positive economics aims to provide an understanding of how the economy works, normative economics seeks to guide economic decision-making based on ethical considerations and societal goals. These two branches of economics complement each other and contribute to a comprehensive understanding of economic issues.

Answer

Normative statements are opinions. They are subjective statements. For example, globalization inflicts economic harm to a country is an opinion. Apositive statement, on the other hand, is a factual statement. They can be tested or proven.

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