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Difference Between Positive and Normative Economics

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What is the difference between positive and normative economics? Which is more prevalent in today's economies? Why?

What role, if any, does ethics play in positive economics? What role do ethics play in normative economics?

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The solution discusses the difference between positive and normative economics.

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What is the difference between positive and normative economics?

Positive economics is the actual study of economics from a perspective of objective analysis. For instance, positive economics would see the prevailing rates if interest going high and would subsequently encourage households to save so as to maximize on returns. Positive economics can be tested for accuracy to put validity upon its claims.

On the other hand, normative economics studies economics from a subjective perspective within its analysis. Rather than looking at the presented facts and results, normative ...

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