Positive economics
A) is a theory of behavior in which people are assumed to respond favorably to benefits and negatively to costs.
B) is a theory of behavior that only counts positive benefits as contributing to the social "good."
C) is a theory of economics that assumes that labor supply is directly (or positively) related to the level of compensation that employers are willing and able to pay.
D) closely resembles Newtonian physics in that it better describes the relationship between energy and motion in the economy.

Question

Quizplus · Accepted Answer

Positive economics is concerned with describing and predicting economic phenomena, focusing on cause-and-effect relationships and objective analysis, such as how people respond to benefits and costs.

Positive Economics