Question
Differentiate between Economics as a positive and as a normative Science.
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Basis
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Positive Economics
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Normative Economics
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1.
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Meaning
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It deals with laws, principles, theories and facts of economics.
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It deals with opinions, policy evaluation and idealistic part of economics.
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2.
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Reality vs. Idealism
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It deals with reality, i.e. 'what is'.
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It deals with idealistic situation, i.e. 'What ought to be'.
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3.
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Value Judgments
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No value judgments are associated with positive economics.
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Value judgments are associated with normative economics.
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4.
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Example
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(a) There is inverse relation between price and quantity demanded, other things being equal.
(b) In India, 34% marginal farmers are living below poverty line.
(c) MGNREGA was launched in 2005.
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(a) Globalization is widening the gap between countries.
(b) Poverty is worse than unemployment.
(c) Price rise is disastrous for the economy.
(d) We should not give subsidies on fertilizers.
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Marks
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Number of Students
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10-20
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5
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20-30
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10
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30-40
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12
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40-60
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28
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60-80
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20
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80-110
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24
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| Income in (₹): | 40-50 | 50-60 | 60-70 | 70-80 | 80-90 | 90-100 |
| No. of Persons: | 5 | 10 | 20 | 25 | 15 | 5 |
| Possibilities | A | B | C | D | E | F |
| Wheat (kg) | 100 | 95 | 85 | 70 | 50 | 25 |
| Rice (kg) | 0 | 10 | 20 | 30 | 40 | 50 |