The document discusses the differences between positive and normative science and economics. Positive science/economics deals with objective facts and descriptions of what is, and can be tested through empirical evidence. Normative science/economics involves value judgments about what should be and introduces subjective opinions and policy recommendations that cannot be empirically tested. While positive economics focuses on causal relationships and explanations, normative economics expresses judgments about economic fairness and desirable policy outcomes and societal goals.

1. Umm-e-Rooman Yaqoob
Roll no. 3
B.S English (4th Semester)
Positive science / Normative science
Positive Science Normative Science
1. Positive science deals with or studies what
is or how problems facing society are
actually solved.
2. Positive science is the philosophy of
science that information derived from
logical and mathematical treatments and
reports of sensory experience is the
exclusive source of all authoritative
knowledge.
3. Positive economics (sometimes called
Descriptive Economics) is the study of
economic reality and why the economy
operates as it does.
4. It is biased purely on facts rather than
opinions.
5. This type of economics is made up of
positive statements which can be accepted
or rejected through applying the scientific
method.
6. "Americans bought five million CDs last
year" is a positive statement - a simple
declaration of fact.
7. For example, here are some positive
statements:
 The temperate is 85 degrees today (this
can be tested)
 The sky is blue (if we know what “blue” is,
this can be tested)
 More people will buy homes if the price of
homes goes down (again, can be tested)
 Raising the minimum wage causes
unemployment (again, look at the data
and see if it is true or not)
8. Positive statements are objective
statements that can be tested, amended
1. Normative science deals with or studies
what ought to be or how problems facing
society should or ought to be solved.
2. Normative science is a type of information
that is developed, presented, or
interpreted based on an assumed, usually
unstated, preference for a particular policy
or class of policies.
3. Normative economics (also called Policy
Economics) deals with how the world
ought to be.
4. In this type of economics, opinions or
value judgments - known as normative
statements - are common.
5. "We should reduce taxes" is an example of
a normative statement.
6. Normative analysis deals with
ideas/opinions/feelings or moral
statements, and generally these
statements begin with the word should.
7. Here are some similar statements that are
normative in nature:
 It is too hot today (how can we test this?
It is an opinion)
 We should take a picture of the blue sky
(again, a recommendation or opinion)
 We should lower the price of homes (can’t
test this, it is how someone feels)
 To be fair, minimum wage should go up
(what is fair? There is no real definition in
economics about fairness so this cannot be
tested)
8. Normative statements are subjective
statements rather than objective

2. or rejected by referring to the available
evidence.
9. Positive economics deals with objective
explanation and the testing and rejection
of theories.
10. Positive economics is a branch of
economics that focuses on the description
and explanation of phenomena, as well as
their casual relationships.
11. Positive economics clearly states an
economic issue.
12. It gives an overview of an economic
situation without providing any guidance
for necessary actions to address the issue.
13. Positive economics does impact normative
economics because it ranks economic
policies or outcomes based on
acceptability (normative economics).
14. Positive economics is the study of the
causal relationships that exist in the
economy.
15. It just states what the relationship is.
16. There are no value judgments involved.
17. Positive Economics is independent of any
ethical position or normative judgment.
18. It deals with "what is" versus "what ought
to be." In other words, objective facts.
19. Positive economics tries to explain how
the world actually works; how markets
work, how consumers and firms behave,
the impact of this policy on this markets
etc.
20. Positive economics stands in contrast to
normative economics, which uses value
judgments.
21. According to Professor Robbins Economics
is a Positive science.
22. According to this economics does not
concern about the goodness or badness of
economic behaviour of human being.
statements – i.e. they carry value
judgments.
9. Normative economics is a branch of
economics that expresses value or
normative judgments about economic
fairness.
10. It focuses on what the outcome of the
economy or goals of public policy should
be.
11. Normative economics provides the value-based
solution for the issue.
12. Many normative judgments are
conditional.
13. They are given up if facts or knowledge of
facts change.
14. Positive economics is defined as the "what
is" of economics, while normative
economics focuses on the "what ought to
be."
15. Normative economics on the other hand,
is a study of what economic relationships
ought to be.
16. Value judgments play an integral part in
the ranking of possible objectives and the
choices to be made among them.
17. Normative Economics is not independent
of positive economics.
18. It is the opinions generated on positive
facts.
19. Normative economics introduces value
judgments, typically dealing with issues of
fairness and equity. Policy objectives, the
weight one might place on conflicting
goals or on different groups' utilities etc.
20. Normative economics is also subjective as
opposed to objective as it is based on
opinion only, often without a basis of
theory.
21. According to Professor Marshall
Economics is a normative science.
22. According to this economics must guide
the human being in attaining maximum
welfare.