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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