Which of the following most clearly distinguishes between positive and normative economics?
A) Positive economics is the study of what ought to be; normative economics is concerned with the facts.
B) Positive economics is the study of the facts; normative economics is concerned with what ought to be.
C) Positive economics is the study of supply and demand in narrowly defined markets such as the market for shoes; normative economics focuses on highly aggregated markets such as the market for all consumer products.
D) Positive economics is the study of goods that are scarce; normative economics is concerned with goods that are not scarce.
Correct Answer:
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