Economics Welfare Economics Questions
Positive economics refers to the study of economic facts and phenomena as they are, without any value judgments or opinions. It focuses on analyzing and explaining economic behavior and outcomes based on empirical evidence and objective analysis. Positive economics aims to provide a descriptive understanding of how the economy functions and how individuals and firms make economic decisions.
On the other hand, normative economics involves making value judgments and expressing opinions about what economic outcomes should be. It deals with subjective statements and involves personal beliefs, preferences, and opinions about what is desirable or undesirable in the economy. Normative economics seeks to provide prescriptive recommendations on how the economy should be organized and how resources should be allocated to achieve certain goals or ideals.
In summary, positive economics is concerned with describing and explaining economic phenomena as they are, while normative economics involves making value judgments and expressing opinions about what economic outcomes should be.