What Is the Difference Between Positive Economic Analysis and Normative

question 210

Essay

What is the difference between positive economic analysis and normative economic analysis? Give one example each of a positive and normative economic issue or question or statement.

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Definitions:

Sole Proprietors

A sole proprietorship is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

Limited Liability

The legal principle that limits each owner's financial loss to the amount of money that individual has invested in a company.

Partnership Name

The official legal name under which a partnership business operates and is recognized.

Both Partners

In the context of business or law, it refers to the mutual and joint responsibility or involvement of two parties in an agreement or venture.