he nature of the positive economy is based on data and facts. It is highly narrative regarding the demand and supply situation and the present trends across the masses.||The Normative economy deals with perceptions and the morally relevant things which need to happen in a certain situation.|
|Argument||The argument which could be arising is objective as it is well backed up by data and relevant information.||The argument would base on subjective because there is no question of real data. All the facts are morally fitted as per the situations.|
|Testing||The statements/ argument under positive economy can be tested with the estimated figures and from there the right or wrong or the difference can be found.||The statement is not possible to test as the data are not available because those are based on a different philosophy, moral values, etc. There is no one who could compare morality along with the actual facts and figures.|
|Caused by Need||The facts are required for a reality check within the economy. Sometimes the desired results may move in a different direction and to control this we need to take the help of a Positive economy.||The opinions are required so as to provide a moral value to the system and the steps which need to be done for better economic results.|
|Based on||Real data, Facts, drivers of demand and supply, the difference in expectations as well as practical implementations, etc.||It is based on moral values, theories of what needs to be done and fictional concepts.|
Conclusion – Positive Economics vs Normative Economics
Both Positive Economics vs Normative Economics concepts are necessary and have its importance based on the situations. The policymakers give emphasize on both Positive Economics vs Normative Economics concepts and their principles are used on a situational basis. The overall framework is required which can be called as the value or the moral of the particular segment. Then the results are required to be extracted and tallied with the budgeted figures. Thus the difference can be obtained and it can be worked upon accordingly so as to get the desired results which were morally supported by the Normative Economics.
This has been a guide to the top difference between Positive Economics vs Normative Economics. Here we also discuss the Positive Economics vs Normative Economics key differences with infographics and comparison table. You may also have a look at the following articles to learn more –