For example, whether some people get rich first can promote the development of the national economy is a positive economic issue.
For the problem of grain and oil price increase of 10%, positive economics should first make clear the preconditions of price increase, and then, through analysis and demonstration, draw the conclusion of whether it can be realized, study the ways to realize it, and predict the results of grain and oil price increase of 10%.
2. Normative economics
Do the poor have to work to get help from the government? Should the unemployment rate be raised to ensure that inflation will not rise rapidly? Should the United States split Microsoft because it violated antitrust laws? Because such questions involve ethics and values rather than facts, there is no right or wrong. They can only be solved through political debate and decision-making, not just through economic analysis.
Extended data
The differences and connections between positive economics and normative economics can be summarized as four points:
1, whether it is based on some kind of value judgment. The value judgment here, in layman's terms, is the identification of whether economic things are "good" or "bad". If economic theory is based on some kind of value judgment, it is normative economics; On the other hand, if it doesn't involve good or bad, it is just practical, then it is positive economics. "Demonstration" is the proof of the example.
2. Solving problems is different. If the problem of "what" is solved, it is positive economics; On the other hand, if the problem of "what should it be" is solved, it is normative economics.
3. Whether it is objective. The differences of opinion in normative economics mainly focus on the differences in the value judgment of the costs and benefits of different behaviors. Because of this, the analysis results have a strong subjective color; Positive economics is practical, so the analysis result is objective.
4. positive economics and normative economics are not absolutely exclusive. In practical economic analysis, these two methods are often mixed.
Baidu encyclopedia-normative economics
Baidu Encyclopedia-positive economics