sophy is sometimes characterized as ideal ist.
Positivism in economics deals with the explanation and prediction of actual resource allocation decisions made by 4consumers, producers, and, to a lesser extent, governments (Friedman, 1953). By contrast, normative economics deals with the development of the criteria by which resource allocation decisions, together with the methods employed in their making, should be assessed (Sassone, 1989). There is no war, per se, between the advocates of positive and normative approaches toeconomics. All economists worthy of the name recognize the value each approach. The disagreements arise, rather, as to the level of emphasis which should be accorded to either of the approaches in (1) the development of economic theory, or (2) the management of an economy at a particular point in time (Keynes, 1917).
Quite beyond any disagreements as to the level of empha sis which should be placed on either the positive or the nor mative aspects of the
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