RuerioBlog

                                     1.    Normative and Positive Economics The normative economist tries to determine the desirability-undesirability of various economic conditions, situations or programs by asking the question: “What ought to or should be/have been?” The positive economist asks: “What is/was/has been?” While positive economics gathers and analyzes real data – about things that happen or have happened – normative economics relies heavily on value judgments and theoretical scenarios that present subjective results, i.e. how things should be or should have been. Normative economics tells us what things would be like or would have been like if public policy were or had been Normative statements usually deliver an opinion on economic scenarios instead of providing an objective analysis that presents proven facts. Positive Economics Tells you how it is/was Normative Economics Tells you how it should/ought to be or should/ought to have been Whoever is using normative econ