Positive Economics

                            Positive Economics

Let us focus on positive economics I'm also going to talk about normative economics because it is

important for you to understand what normative is to understand what positive is so in a somewhat 

textbook definition the  economics is a branch of economic analysis that describes the

economy works therefore it is objective and fact-based. So, a positive economics question might be

something like how much revenue will tolls yield next year, and that's based off of whatever  the 

current price of the toll may be and how much we expect the traffic to be it's a forecast basically

normative economics is a branch of economic analysis that describes how the economy should work 

there for Noren economics is opinion-based. example and the government is thinking

about increasing tolls from a dollar to a dollar fifty and if revenue will increase or decrease this would 

be a case of normative economics because economists may disagree if the toll should  raise to begin

with and if this toll raise will increase revenue or not based off what traffic they think the area may

get so and what economic analysis do questions have a right  the answer is positive economics and this 

is because if you remember in the definition positive economics is fact-based therefore it has a right or 

wrong answer so for that first question, I asked how much revenue will tolls yield next year

there will be a right and wrong answer for that based on how much the Colt toll cost. So if the toll is $1 

but I base it off of 50 Cent's because forecasts even though they're fact-based are still only an estimate  

so a mu ch type of economic the analysis is there no right or wrong answer take a moment to sit and 

think about this one as well based off the the fact the first answer was positive economics is safe to 

assume the second one here is normative economics,  but if they have switched around,  and you were 

on a test. how would you know you would know the second one is normative because there's no right or

 wrong answer I can disagree with my fellow economists about the effects of increasing a toll from one

 dollar to a dollar 50 should we do it. I might say yes but they might say no and I could have a wildly 

different reason for it than him we might agree that if we increase the toll from a dollar to a dollar 50 

revenues will go down and it'll cost the government a little more money but,  it also decreases pollution 

but,  that doesn't mean we will agree that we should increase this tax so do economists disagree more 

often in one type of analysis than another take a moment to think about this one as well the answer to 

this is yes.  Economists tend to disagree more with normative economics than positive economics and

that's because,  as I explained in the the second question in which type of economic analysis is there no 

right or the wrong answer it's because normative is opinion-based therefore with that that a total 

example that I told you we could have wildly different reasons for disagreeing even though we will 

agree on the positive the fact-based part and  that's because there's no right or wrong if we should 

increase that tax or not it's all based on our opinions are not values because economists we're citizens as

 well, therefore, we're going to have opinions. Especially based on the knowledge. So I guess a 

potential mnemonic to remember  normative are normal people who have opinions. 

10 Legit Ways To Make Money

    https://bit.ly/33Y8lLU