Positive theory refers to a theory that:
A) explains how economic participants should act.
B) describes how economic participants act.
C) is optimistic.
D) has been shown to have high explanatory power as a result of empirical testing.

Question

Quizplus · Accepted Answer

Positive theory describes how economic participants act, focusing on factual statements and observations rather than prescriptions or value judgments.

Positive Theory Refers to a Theory That