Recognize the difference between normative and positive economics. Which one is the better choice, and why?
Distinguish between positive and normative economics. Which one should be preferred and why?
Share
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
1. Introduction:
Economics is a social science that studies how individuals, businesses, governments, and societies allocate scarce resources to satisfy their unlimited wants. It is often divided into two branches: positive economics and normative economics. These two branches differ in their approach and focus, leading to distinct methodologies and conclusions.
2. Positive Economics:
3. Normative Economics:
4. Key Differences:
5. Preference and Justification:
Positive economics is generally preferred over normative economics for several reasons:
6. Conclusion:
While both positive and normative economics play important roles in understanding and analyzing economic issues, positive economics is generally preferred for its objectivity, testability, and predictive power. By relying on empirical evidence and data, positive economics provides a more reliable foundation for economic analysis and policy-making.