Positive economics is a system of economic analysis that delves into the causes and effects of economic decisions, investments, and situations. It is primarily focused on factual information, data, and is a highly objective stream of economics. It is the stream of economics which attempts to establish what already exists, based upon theories and hypotheses that have been well confirmed and tested.

Positive economics is focused on the scientific approach to facts, data and evidence. It is used to analyze the actual economic events and activities in the past, present, and future. It can be used to predict the outcome of various economic scenarios and give advice on how to best utilize resources. Positive economic analysis does not factor in any of the social and political values of individuals or their opinions, rather it focuses on facts and figures.

Positive economic theory does not provide any advice or instruction regarding economic policies. Positive economic theory only serves as an economic prediction tool to ascertain what economic trends are likely to occur, or what impact various scenarios may have. It is important to note that this form of economics does not deal with any form of normative economics, or the study of what should be in the future. This is important because the values associated with normative economics are subjective and opinion-based, rather than fact-based.

Despite the clear distinction between positive and normative economics, both forms of analysis can work together when developing policy. Normal economics can be used to identify the desirable outcomes of policy and the value judgments, while positive economics can provide evidence-driven analyses of what is, in fact, likely to have an impact and provide reliable predictions as to what could occur.

In conclusion, positive economics is a highly objective form of economic analysis that relies on facts, data, and evidence to make predictions about future economic trends and outcomes. It does not provide any advice or instruction for economic policy and is distinct from normative economics in its focus on factual information and its lack of value judgments. However, when used in tandem with normative economics, positive economics can give policy-makers the beneficial insight needed to determine the best decisions for any given situation.