POSITIVE vs.

NORMATIVE ECONOMICS

The firm producing bricks, which is established at Duwakot of Bhaktapur,

sets the price of brick considering its cost of productions and some
margins for the profits. That is, firm just considered the private cost of
producing the bricks but not the social cost as a whole. Social cost is the
cost bear by the society due to dust and the health problems. Society
later ask government to impose the tax so as to increase the price so that
it reflects true social cost and compensate them for the cost due to this
brick industry. (Explain positive and normative aspects).

ANSWER:

We can draw the following assertion from the aforementioned case

study of the Brick Industry, which supports both positive and normative
economics.

Following are statements about positive economics that are factual in

nature and tell good or bad rather than being judgmental. This clarifies
the link between cause and consequence. Setting the price of a brick
takes into account the cost of production as well as any profit margins. It
provides an answer to the topic of how Brick prices are determined. The
brick industry generates more dust and pollutants, which exacerbates
health issues and also affects the economy. In addition to contaminating
the air, the brick factories also degrade soil around them as soil is digged
up to make clay which is later molded into bricks. This causes the fertility
of land to be damaged because of the runoff from stripped patches
which makes it impossible or difficult to grow crops. While the rise in
brick industry has brought more work opportunities to people, it has also
become one of the top contributors to air pollution and health related
problems among workers and others in the community. It has been
observed that due to lack of legal provisions and enforcements in the
country and adequate awareness the employees are working in this
hazardous situation without using minimum protection in most of the
industrial establishments. These remarks bolster positive economics by
addressing the question of what influence brick industry has.

Following are statements about normative economics which focuses on

the value of economic fairness or what the economy should be. It is that
economics which tries to determine people's desirability to different
economic programs and conditions by asking what "should" be or what
"ought" to be. Society asking the government to impose the tax to bear
social cost and compensate for health issues and environmental
problems provides an answer to what can be done to improve the
situation. Implicating new methods of industrial waste management
from derivatives produced in brick industries of Nepal is necessary to
combat the rapidly increasing manufacturers and capacity within the
factories. Extra tax must be taken so as to evaluate dust exposure in
workplace that includes testing for levels of respirable dust, particulate
matter, many other pollutants, and maintenance of damaged roads
caused by heavy truck loads of brick industries. Using these interventions
and strategies to reduce environmental and occupational health hazards
improve ergonomics and subsequent worker exposure will prove to
benefit workers health and safety and improve economic growth of the
community. These remarks bolster normative economics by addressing
the solutions to improve social damage or what ought to be done to
compensate the cost due to brick industries at Bhaktapur.