Question

The difference between the positive and normative approach in economics is that ___________.

• A. positive economic start with statement in affirmative mode whereas normative in negative mode
• B. positive economic concerns matter of fact, whereas normative concerns matter of opinion
• C. in positive economic answer is yes whereas in normative there is no answer to the problem
• D. all of the above

Answer 1

Answer: (B)

positive economic concerns matter of fact, whereas normative concerns matter of opinion

• Positive economics: It studies the fact of life i.e it deals with 'things as they are'. It deals with what are the economic problems and how are they actually solved. It explains the cause and effect relationship and avoids giving suggestions.
  
• Normative economics deals with what ought to be or how the economic problems should be solved. It discusses what the desirable things are and how they should be realized. Thus it is suggestive in nature.