Economics is both a science as well as an art. Economics involves developing policies and implementing those policies, which is an art in itself
Science is the relationship between causes and effects. Economics has theories, which describes cause and effect relationship eg. cause - fall in price and effect - increase in demand.
Economics is a positive as well as normative science
a.Positive Science (What is? What was? What will be?) – Actual happenings.
• India is an over-populated country.
• Prices in Indian economy are constantly rising.
b. Normative Science (What ought to be? What ought to have been?)
• Fundamental principle of economic development should be the development of rural India
• Agricultural income should also be taxed.
• There should be no unemployment in the country.