Positive Economics and Welfare Economics
We should now be in a position to lay down a clear line of demarcate action between positive economics and welfare economics We may refer once again to what we ave discussed in the beginning of the book regarding the scope of economics There e drew a distinction between positive economics and normative economics That distinction practically holds good here
Positive economics explains an economic phenomenon and normative economics moments on the desirability or otherwise of that phenomenon. For instance positive economic explains why wealth in the community is unequally distributed and normative economics would say whether the unequal distribution of wealth is desirable or not. The question of desirability falls in the purview of welfare economic. Again positive economics would explain why the price of wheat has sen so high welfare economics would suggest price control measures to promote he greatest good of the greatest number. In short positive economics formulates economic generalization or laws whereas welfare economics is concerned with economic policies
