Positive Economics
Positive economics is an objective approach to studying economics, focusing on facts and cause-and-effect relationships. It deals with what is or what will be, based on data, theories, and empirical evidence. Here are key points to distinguish positive economics:
- Objective Analysis: Positive economics involves objective analysis of economic phenomena without incorporating personal opinions or value judgments.
- Factual Statements: It focuses on making factual statements about the economy, such as stating that an increase in taxes leads to a decrease in consumer spending.
- Empirical Evidence: Positive economics relies on empirical evidence and data to support its theories and conclusions.
- Descriptive: It describes economic events, trends, and patterns as they are without prescribing how they should be.

Normative Economics
Normative economics, on the other hand, involves subjective judgments and value-based analysis. It deals with what should be or what ought to be in the economy, based on individual beliefs, values, and ideologies. Here are key points to distinguish normative economics:
- Subjective Analysis: Normative economics involves subjective analysis that incorporates personal opinions, values, and judgments.
- Value Judgments: It includes making value judgments about economic policies and outcomes, such as stating that a particular tax policy is fair or unfair.
- Prescriptive: Normative economics prescribes policies and recommendations on how the economy should be managed or what actions should be taken.
- Opinion-based: It is based on opinions, values, and ideologies, which can vary among individuals or groups.
In conclusion, while positive economics focuses on objective analysis and factual statements about the economy, normative economics involves subjective judgments and value-based analysis, prescribing what should be done in the economy based on individual beliefs and values.