The Key Difference Between Positive vs Normative Economics

positive economics vs normative economics
Feature	Positive Economics	Normative Economics
Definition	Study of economic facts and relationships without judgments.	Study of what ought to be, involving value judgments and opinions.
Focus	Objective analysis based on data and facts.	Subjective statements based on beliefs and values.
Purpose	Explain and predict economic phenomena.	Prescribe policies or actions for economic improvement.
Examples	"Inflation rate is 5% this year." "Unemployment rose by 2%."	"Inflation should be reduced." "Government should create more jobs."
Testability	Can be tested and validated with evidence.	Cannot be tested; based on opinions.
Use in Policy Making	Provides facts to inform decisions.	Guides decisions based on desired outcomes.
Language Style	Descriptive and neutral.	Prescriptive and evaluative.
Example Question	What is the effect of interest rate changes on investment?	Should interest rates be lowered to boost investment?