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Question

___________ economics explains cause and effect relationship between economic phenomena.

A
Positive
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B
Normative
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C
Empirical
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D
Applied
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Solution

The correct option is A Positive

Positive economics: It studies the fact of life i.e it deals with 'things as they are'. It deals with what are the economic problems and how are they solved. It explains the cause and effect relationship and avoids giving suggestions.


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