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Difference between Positive and Normative Economics

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Difference between Positive and Normative Economics

Difference between Positive and Normative Economics:

Positive Economics
Normative Economics
The concept of positive economics was introduced by classical economists Adam Smith, David Ricardo, J.B say and L. Robbins.
The concept of normative economics was developed by new classical economist such as Alfred Marshall A.C Pigou etc.
It attempts to answer ‘What is?’
It attempts to answer ‘What ought to be?’
The answers are based on facts and reality.
The answers are based on ethics
It deals with realistic situations.
It deals with idealistic situation.
It can be verified with actual data.
It can’t be verified with actual data.
Value judgements are not given in positive economics
Value judgements are given in normative economics
Positive economics analyses the subject matter by the help of the cause and effect relationship.
Normative economics analyses the cause and effect relationship of the economic phenomenon.
The positive science is being applied in developed and developing countries, educated and uneducated society, all over the world.
The normative science is applied only in educated societies.

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