Positive and Normative Economics

Positive and Normative Economics is appropriately known as the two arms of Economics. Positive Economics manages different monetary peculiarities, while Normative Economics centers around what financial matters ought to be, this part of financial aspects discusses the worth of the organization's reasonableness. In clear language, positive economics answers the 'what' factor, while normative  commands the 'ought to be' or 'should be' segment of economics

Indeed, this was just a prelude about the whole conversation. We will anticipate examining 'What is Positive and Normative Economics ?', we will take up the place of contention between these two studies

What is Positive Economics?
Positive Economics is the surge of economics that has a goal approach, depended on realities(FACT). It focuses on the depiction, measurement, and explanation of economic development , prospects, and unified matters. This development of economics depends on genuine information investigation and significant raw numbers. Thusly, it attempts to lay out a circumstances and logical results relationship or social relationship that can help decide as well as test the advancement of economic theories

Here, the study of economics is more goal and zeros in additional on realities (FACT). Additionally, the assertions are exact, elucidating, and quantifiable. Such reports can be evaluated concerning recognizable proof and authentic references.

A positive economics example is an assertion, Legislatures subsidized medical services floods public expenditure. This assertion depends on realities and has a significant worth judgment engaged with it. In this way, its validity can be demonstrated/proven or disproven through an investigation of the public authority's contribution in medical services.

What is Normative Economics?

Normative economics deals with prospective or theoretical situations. this division of economics has a more subjective approach. it focuses on the ideological, perspectives based, opinions oriented statements towards economic activities. the aim here is to summarise the desirability quotient among individuals and quote factors like ‘what can happen’ or ‘what ought to be’. Normative economics statements are subjective and rely heavily on values originating from an individual opinion. these statements are often very rigid and perceptive. therefore, they are considered political or authoritarian a normative economics example is, “the government should make available fundamental healthcare to every citizen”. you can understand that this statement is based on personal perspective and satisfies the need for ‘should be’ or ‘ought to be’.

Case in Points of Positive Economics – Examples;
Monopolies have proved to be inefficient
The desired rate of return on gambling stocks are higher compared to others.
The relationship between wealth and demand is inverse in the case of inferior goods.
House prices reduce once the interest rate on loans get higher.
Car scrappage schemes can result in a fall in the prices of second hand cars.

Case in Points of Normatics Economics – Examples;
The government should implement strict wealth tax laws to decrease the uneven distribution of wealth.
No individuals should be entitled to inheritances as it belongs to society.
Import duties should be increased on goods coming from nations with humble human rights record.
Investors ought to be more socially responsible and stop investing in vice stocks.
Developing countries should only accept democracy when their entire population is educated and liberated.

FACULTY ; SOCIAL SCIENCE
DEPARTMENT; PUBLIC ADMINISTRATION & LOCAL GOVERNMENT
REG NO ; 10510689BE
COURSE; ECO 101 ( PRINCIPLE OF ECONOMICS )