positive and negative economics
Answer (1)
Positive Economics refers to the objective and fact-based analysis of how the economy works. It deals with what is, what was, or what will be. It can be proven true or false using evidence and data.Examples of Positive Economics"An increase in income tax reduces household consumption.""The inflation rate in the Philippines in 2023 was 5.8%."Negative Economics, more properly called Normative Economics, involves value judgments, opinions, or beliefs about what ought to be. It reflects preferences and cannot be tested or proven right or wrong in the same way as positive statements.Examples of Normative Economics"The government should reduce income taxes to help the poor.""It is better to prioritize education spending over military spending."Key DifferencesPositive economics is descriptive, while normative economics is prescriptive.Positive = based on facts and models; Normative = based on opinions and ethical views.Understanding the difference helps us separate objective analysis from personal or political beliefs when studying economic issues.
