Answer in Accounting for Henok #153792
__________ It is concerned with analysis of fact and attempts to describe the world as it is
There are two main perspectives in economics: positive statements and normative statements.
Positive statements are statements of facts. They are objective and factual. This means, positive economics describe the world as it is without giving subjective analysis or personal opinions. Resultantly, these statements are either true or false as they are tested against facts. Examples of positive statements/economics include:
- The global coronavirus pandemic originated from China.
- Kuwaiti has the strongest currency in the world.
- International Accounting Standards are meant to standardise presentation of financial statements to ensure comparability.
- A cure for coronavirus will revive global economies.
Normative statements, on the contrary, are based on value judgements rather than facts.