Positive Economics Study Help

Positive Economics

Definition: The study of economics based on objective analysis. Most economists today focus on positive economic analysis, which uses what is and what has been occurring in an economy as the basis for any statements about the future. Positive economics stands in contrast to normative economics, which uses value judgments.

Hint- Positive economics is fact, not opinion. Think "Positively true" to help you remember. 

Normative Economics Study

Normative Economics

Definition: A perspective on economics that incorporates subjectivity within its analyses. It is the study or presentation of "what ought to be" rather than what actually is. Normative economics deals heavily in value judgments and theoretical scenarios. It is the opposite of positive economics.




Hint- Normative is mostly opinion based statements. To remember, think of someone saying something like "It's Normal that most people drive cars." This is an opinion, or a normative statement.