Explain the Difference Between Positive and Normative Analysis.
Application of the two types of analysis. Positive statements are objective. Difference Between Positive And Normative Economics Comparison Summary Economics Lessons Economics Economics Notes Explain the difference between positive and normative analysis. . An example of this could be cigarette smoking is bad. Here an investigation of what happened and what is happening is studied and a comparison is made and with this information the economists predict how the future will be. Positive economics is related to the analysis which is limited to cause and effect relationship. Because these two roles have different goals they require different types of language. As per normative theory of accounting the analysts would give an accounting approach to be pursued in this scenario based on the incidents that have took place. Positive statements are statements about economics which can be proven true or false by evidence. ...
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