Short notes on positive and normative economics.
Positive Economics... A positive science is that which studies the facts as they are but not as they ought to be. It means it only explains what is or what will be. It studies the things as they happen in reality. It only explains the situations and conditions but not comment what is right and what's wrong. It's totally neutral between wants. It studies causes and effect relationship between economic variables. According to classical economists, economics is a positive science. According to them, it was non of the function of economists to comment the rightness or wrongness of economic situation. It's simply concerned with the problem of resources in relation to unlimited wants. For example: the manufacture and sale of cigarette may be injurious to health. So it's morally unjustifiable but economists have no right to pass the judgements on this because it satisfies human wants and involved in economic activities. Like classical econo...