Question

Positive economic theory deals with ____________.

• A. what is or how the economic problem facing the society are solved
• B. how the problem should be solved
• C. what to produce
• D. when to produce

Answer 1

Answer: (A)

what is or how the economic problem facing the society are solved

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 actually solved. It explains the cause and effect relationship and avoids giving suggestions.