Positive Economics
Positive Economics talks about the facts and proven opinions of economics
Example : PPC Graphs is a graph used to check the maximum production that can be done between 2 goods or service, This is a proven fact in economics
Normative Economics
Normative Economics talks about big theories of economics, it talks about unproven facts and other opinions from people
Example : There are many theories that have not been proven in economics, there are certain examples we could go through, capital theory, behavioural economics and etc
Theory Of Behavioural Economics
Behavioural Economics talks about the combination of psychology and economics
In economical terms it talks about the behaviour of producers and there thoughts of how they produce through psychology
Behavioural economics is considered a theory as there no proper evidence that proves this right, people mostly use behavioral economics to detect market failure and other human decisions that are taken in a economy
Positive And Normative Economics
Mostly normative economics turns to positive economics but in certain cases positive economics can also become normative as certain facts can be questioned
For normative economics, positive economics is really important, just like classical physics is important for quantum physics, positive economics gives us a base about normative economics
Command Economy
Command Economy talks about the economy where the government are considered as the most important decision maker of the economy
In economies like these no decisions can be taken by the private firms, as the government controls as a major, these kind of economies are called command economies
In a economy like this there is no proper command economy but there are certain countries where government leads the majority of the decision making
How do economists use positive economics to inform policy decisions?
What role do value judgments play in normative economics?
Can a single economic issue be analyzed from both positive and normative perspectives? If so, how?
How do positive and normative economics contribute to public policy debates?
Why is it important to distinguish between positive and normative economics?