BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -“Positive theory is a theory that tries to explain how the world works in a value-free way, while a normative theory provides a value-based view about what the world ought to be like or how it should to work. In general, positive theories express what is, while normative theories express what ought to be.”

Detailed explanation-2: -Descriptive theory tends to be more useful in deciding what people will do and how they will act, while normative theory focuses on people’s optimal behavior. Understanding both is essential in understanding key components of economics, and making sense of our own irrational behaviors.

Detailed explanation-3: -What is the difference between normative and positive statements in the context of economics or philosophy? Normative statements are based on opinions or ethics-what someone believes should be. Positive statements, on the other hand, are testable, even if they may not necessarily be true.

Detailed explanation-4: -Positive economics is based on judgments, whereas normative economics is not. applied to both microeconomics and macroeconomics.