Question

________ analyses cause and effect relationship between variables but it does not pass value judgment.

• A. A positive science
• B. Pure science
• C. Both (A) and (B)
• D. Normative science

Answer 1

Answer: (C)

Both (A) and (B)

A positive or pure science analyses cause and effect relationship between variables but it does not pass value judgment. It states 'what is' and not 'what ought to be'. Positive Economics is the one that simply states facts and uses empirical evidence. Economics only studies facts and makes generalisations from them. Therefore we can state that economics is positive or pure science.