“The Population of China is more than the population in India” is a positive statement that is true and can be verifiable. These statements can never be true or false as these include opinions only. It involves value judgement and opinions by economists. It doesn’t involve value judgement or opinions.
These statements are not verifiable at all. Here, facts and figures are used to verify the truth.
The statements in Normative economics represent ‘what ought to be’. The statements in Positive economics represent ‘what was, ‘what is’ and ‘what would be. It deals with the opinions of economists related to solutions for economic issues or problems. It deals with the economic issues related to the past, present and future. It refers to the study of economic issues which involve a value judgement. It is the study of economic issues subject to verification.
Chart of Difference between Positive Economics and Normative Economics: These statements are only opinions and not verifiable for truth. For instance,Ī) Govt policy will bring an end to the problem of unemployment in the country.ī) Govt should provide basic facilities to all citizens of a country.Īll these statements are elements of normative economics. The different economist may offer different opinions carrying value judgements on the solution to an economic problem. It refers to the study of economic issues which involve a value judgement, which is debatable.
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