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Positive economics deals with objective explanation and the testing and rejection of theories. Positive statements are objective statements that can be tested or rejected by referring to the available evidence.
For example:
- A rise in consumer incomes will lead to a rise in the demand for new cars.
- A fall in the exchange rate will lead to an increase in exports overseas.
Normative statements express an opinion about what ought to be. They are subjective statements rather than objective statements - i.e. they carry value judgments.
For example:
- The level of duty on petrol is too unfair and unfairly penalizes motorists.
- The government is right to introduce a ban on smoking in public places.
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What are two subfields into which economics is divided and explain it?
The two subfields of economics are positive statements and normative statements.
What is the Difference between positive and normative science?
A Normative Theory expresses a judgment about whether a situation is desirable or undesirable, and is based upon some moray or standard. The world would be a better place if the moon were made of green cheese, is a normative statement because it expresses a judgment about what ought to be. Notice that there is no way of disproving this statement. If you disagree with it, you have no sure way of convincing anyone, who believes the statement, that it is incorrect.A Positive Theory expresses an opinion on a condition, assuming what is, and that contains no indication of approval or disapproval and is not based on any standard. Notice that a positive statement can be incorrect. The moon is made of green cheese, is incorrect, but it is a positive statement because it is a statement about what exists.
What is the positive and normative analysis in economics?
A positive analysis is a statement of what is. The truth. Purely descriptive statements or scientific predictions.A normative analysis is a statement of what ought to be. Analysis involving value judgments.
What is a sentence contrasting positive and normative economic analysis?
write a sentence contrasting positive and normative economic analysis
Is Us government shoud institute higher tariffs on imports positive or normative?
normative
What are two subfields into which economics is divided and explain it?
The two subfields of economics are positive statements and normative statements.
Are Normative statements are expressions of facts?
nurp
What is the Difference between positive and normative science?
A Normative Theory expresses a judgment about whether a situation is desirable or undesirable, and is based upon some moray or standard. The world would be a better place if the moon were made of green cheese, is a normative statement because it expresses a judgment about what ought to be. Notice that there is no way of disproving this statement. If you disagree with it, you have no sure way of convincing anyone, who believes the statement, that it is incorrect.A Positive Theory expresses an opinion on a condition, assuming what is, and that contains no indication of approval or disapproval and is not based on any standard. Notice that a positive statement can be incorrect. The moon is made of green cheese, is incorrect, but it is a positive statement because it is a statement about what exists.
What is the positive and normative analysis in economics?
A positive analysis is a statement of what is. The truth. Purely descriptive statements or scientific predictions.A normative analysis is a statement of what ought to be. Analysis involving value judgments.
What is a sentence contrasting positive and normative economic analysis?
write a sentence contrasting positive and normative economic analysis
Is Us government shoud institute higher tariffs on imports positive or normative?
normative
Which are examples of normative goals?
help me
Saddam Hussein used weapons of mass destruction in the 1980 is it positive or normative economics?
normative
Why does the distinction between positive and normative statement matter for economics?
A positive normative is one which can be examined by referring to facts i.e 80% of your microeconomics class is made up of females. while a normative statement cannot be tested by examining facts it is an opinion or value judgement.
Is the statement 'Society faces a short-run tradeoff between inflation and unemployment' positive or normative?
positive
What is the difference between 'Normative Accounting Theory' and 'Positive Accounting Theory'?
Normative theory is used to advise what methods should be used for accounting. Positive accounting theory explains and predicts accounting as it is currently happening.
What is the difference between positive and normative economics?
Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. Normative economics is the study of economics that attempts to determine the desirability of different economic conditions.
