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Question
Distinguish between positive economics and normative economics, with suitable examples.
Distinguish Between
Solution
The difference between positive economics and normative economics is given as follows:
| Basis | Positive Economics | Normative Economics |
| Definition | Positive Economics deals with factual situations i.e. they describe the actual situation of what was what is and what would be. | Normative Economics deals with the ideal situations of what should be or what ought to be. |
| Personal Value Judgement | It does not involve any personal value judgement | It involves the personal value judgement |
| Examples | The rate of inflation at present is 4% | What should an ideal rate of inflation be? |
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Positive and Normative Economics
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