what is difference between Positive economics and normative economics?
Positive economics
tries to explain the way the economy actually operates
only explains/describes what it is and it does not tell what is right or wrong
http://en.wikipedia.org/wiki/Positive_economics
Nrmative economics
explains the way economy actually should operate
evaluates and tells what ought to be
http://en.wikipedia.org/wiki/Normative_economics
I was asked this question in my interview.