Which of the following is most closely associated with positive economics?
A) Determining the impact of government spending on the actual level of unemployment.
B) Determining the best level of immigration into a country.
C) Determining whether too many luxury goods are being produced.
D) Determining whether or not the government should reduce poverty.

Question

Quizplus · Accepted Answer

Positive economics is concerned with explaining how the economy actually works, rather than how it should work. Determining the impact of government spending on unemployment is a factual analysis of the economy, and focuses on what is rather than what should be. The other choices are more normative in nature, and involve making judgments about what should be done.

Which of the Following Is Most Closely Associated with Positive