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Positive Economics

Positive Economics
Positive economics is an approach to economics that seeks to understand behaviour and the operation of systems without making judgements. Positive economics is sometime known as 'value free economics'. It describes what exists and how it works. Positive economics is a social science and as such is subject to the same checks on the basis of evidence as any science. Positive statements are objective statements dealing with matters of fact or they question about how things actually are. Positive statements are made without obhivious value judgements and emotions. They may suggest an economy relationship that can be tested by resources to the available evidence. Positive economics can be described as "what is, what was and what probably will be" economics. Statements are based on economic theory rather than raw emotion. Often these statements will be expressed in the form of a hypothesis that can be analyzed and evaluated. The concept of positive economics is broadely classified under two aspect.
  • Positive Microeconomics: It analysis the issues of individual price, income, expenditure, savings, investment, rent, wages, profit in a positive way.
  • Positive Macroeconomics: It analysis the issues of aggregate income, savings, investments and output in a positive way.

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