Final answer:
Positive economics focuses on describing economic behavior, while normative economics deals with subjective opinions on how the world should be.
Step-by-step explanation:
Economics can be divided into two branches: positive economics and normative economics. Positive economics focuses on describing economic behavior as it is and making factual statements that can be tested. Normative economics, on the other hand, deals with subjective questions of opinion and describes how the world should be based on one's values.
An example of positive economics is when an economist analyzes a proposed subway system in a city. They would evaluate if the expected benefits outweigh the costs to determine if the project is worth pursuing. This analysis is based on factual information and can be tested or verified.
An example of normative economics is when an economist argues for extended unemployment compensation during the Great Depression because they believe a wealthy country like the United States should take care of its less fortunate citizens. This statement is an opinion based on the economist's values and cannot be proven or disproven.