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Introduction of Micro-Economics — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIntroduction of Micro-Economics3 Marks
Question
Distinguish between normative economics and positive economics, with suitable examples.
OR
Distinguish between positive and normative economics. Give an example of each.
✓

Answer

S. No
Basis
Positive Economics
Normative Economics
1.
Meaning
Positive economics deals with economic issues as they are. It is based on facts and actual data.
Normative economics deals with economic issues as they ought to be. It is based on opinions and is suggestive in nature.
2.
Objectives
Positive statements are strictly neutral towards ends.
Normative statements can only be assessed relative to beliefs and value judgements.
3.
Example
Growth rate is 5%; industrial output grew by 3% etc.
The unemployment rate should be reduced.

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