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:
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 two subfields of economics are positive statements and normative statements.
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.
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.
write a sentence contrasting positive and normative economic analysis
normative
The two subfields of economics are positive statements and normative statements.
nurp
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.
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.
write a sentence contrasting positive and normative economic analysis
normative
help me
normative
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.
positive
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.
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.