Positive economics does not require us to believe that actual happiness is the same as utility as modeled in economic theory.

Question

Quizplus · Accepted Answer

Positive economics is concerned with studying and predicting economic behavior and outcomes based on empirical evidence and logical reasoning, without making value judgments. Utility, which refers to the satisfaction or usefulness a person derives from consuming a good or service, is a concept commonly used in economic models to explain individual decision-making. However, positive economics does not necessarily assume that utility and actual happiness are the same, as happiness is subjective and difficult to measure objectively.

Positive Economics Does Not Require Us to Believe That Actual