Positive and Normative Economics

   Basis              Positive Economics    Normative Economics
1. Meaning It is a body of systematised knowledge relating to WHAT IS? This body of knowledge relates to WHAT OUGHT TO BE?
2.Verification These statements can be empirically verified. These statement can not be verified with precise accuracy.
3. Basis This is based on true facts and given figures. Based on individual’s opinion and not backed by facts.
4. Nature This is not suggestive in nature. Being suggestive in nature can also be given the nomenclature as ‘Regulative science’
5. Objective The objective is to make true description of economic acticities. The objective behind this is to determine the ideals.