Concept of Positive and Normative Economics - MeroPaper

Economics is a Science. Now the Question is Whether it is a positive Science or a Normative Science. this Question can be discussed as follows.

1. Economics as a Positive Science

A positive Science Studies things as they happen in reality. It Explains what was, what is and what will be. It means positive Science only Describes. It is Neutral between ends. Economics is a positive science it Studies the cause and Effect relationship between price and supply of a commodity. This law states that the supply of a Commodity rises when its price rises and vice-versa. the concept of positive economics was introduced by classical economists such as Adam smith, J.B.Say, David Ricardo, and Modern Economist Lionel Robbins. According to Robbins, The Function of economists is to explore and explain and not to advocate or condemn. Therefore, Robbins Regarded economics as neutral between ends that are not concerned with good or bad, moral or ethical questions, Hence, economics is a positive science.

2. Economics as a Normative Science

A Normative Science Studies things as they should be. It is Related to the Criteria of what ought to be. when Economics is concerned with what is good or bad, it enters the world of the value of judgment. This Side of the study of economics is called normative economics. The concept of normative economics was developed as well as led by neo-classical economists such as Alfred Marshall, A.C.Pigou, etc. the main aim of economics is to explain the general causes on which the material welfare of human being depends. Economists offer valuable advice to solve the different economic problems. For example, economists suggest how to remove unemployment, how prices can be stabilized, etc. It is the duty of economists to make a careful study of different economic problems. Hence, economics is a normative science.

Now, we can conclude that economis is both positive and normative science in modern time. The modern economic science is the blending of positive science and normative science. According to the watson, “It is a positive science when it is confirmed to statements about causes and effects and to functional relation of economic variablles. It is normative when it involves norms and standards, mixing them with cause and effect analysis.”


By Hemant

Hemant Chaudhary is an student 19 years old. He is interested in Hacking, Blogging,coding. He like to Visit new Places and make new Friends. He used to Learn His web works From Friends and Currently is is CEO and Founder of Meropaper and