Question

Positive economics:________

Answer 1

Answer:

Option B, postulates a relationship that is potentially refutable and then seeks to determine whether the stated relationship is correct.

Explanation:

The basic purpose of positive economics is to determine the description and explanation of economic phenomena.It relies on objective data, facts, and figures.

Unlike normative economics which mostly concerns with 'what ought to be', positive economics is focused more towards 'what is'. It has an objective and fact-based approach where statements are determined through reasoning and factual analysis.

For instance, the statement "Public schools increase public expenditure" is a positive economics statement. It is a factual statement because if we look into statistics, a huge portion of money is spent on public schools.