AP Micro & MacroCore Economic Concepts
Positive vs. Normative Economics
Positive economics is the study of what is, while normative economics is the study of what ought to be.
Positive economics deals with objective or scientific explanations and predictions about economic relationships and phenomena. Normative economics deals with subjective or value-based statements about what is desirable or what should be. Positive statements can be tested and proven true or false, while normative statements involve personal perspectives and value judgments.