Distinguish between positive economics and normative economics, with suitable examples.
The difference between positive economics and normative economics is given as follows:
|Basis||Positive Economics||Normative Economics|
|Definition||Positive Economics deals with factual situations i.e. they describe the actual situation of what was what is and what would be.||Normative Economics deals with the ideal situations of what should be or what ought to be.|
|Personal Value Judgement||It does not involve any personal value judgement||It involves the personal value judgement|
|Examples||The rate of inflation at present is 4%||What should an ideal rate of inflation be?|
Concept: Positive and Normative Economics
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