Positive and Normative Economics:
The concept of positive economics was introduced by classical economists Adam Smith, David Ricardo, J.B says and modern economist L. Robbins. Positive economics analyses the subject matter by the help of the cause and effect relationship and attempts to answer the question ‘what is?’ It aims to provide an answer to the question in a straight forward manner because the question ‘what is’ needs only the descriptive answer. The answers are based on fact and reality. Eg; the relationship of falling demand at rising prices are reality found in every society. The positive science is being applied in developed and developing countries, educated and uneducated society, all over the world.
The concept of normative economics was developed by new classical economist such as Alfred Marshall A.C Pigou etc. It is a systematized body of knowledge which analyses the cause and effect relationship of the economic phenomenon and attempts to answer the question ‘what ought to be?’ It attempts to answer very sensitive questions in an analytical manner. Normative Economics is guided by moral values and the basic questions of morality. Eg; while employing a worker in the garden, the morality states that the wages must be provided to the worker. Since the normative science is guided by the moral values and sensitive moral questions which are properly maintained only in an educated society.
**Note That (The above-mentioned note of positive and normative economics can be written also as the difference between them)