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Describe the Difference Between Positive and Normative Economics

question 20

Essay

Describe the difference between positive and normative economics.Cite an example of each.


Definitions:

Contract Law

The body of law that governs the formation, execution, and enforcement of agreements between parties, ensuring the legality of transactions and obligations.

Power of Attorney

A legal paper that provides one individual the power to represent another individual in legal or financial affairs.

Agency Agreement

A contract where one party (the agent) agrees to represent or act for another party (the principal) in business dealings with third parties.

Writing Requirement

A legal principle that certain kinds of contracts or agreements must be memorialized in a signed writing to be enforceable.

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