Which of the following statements explain positive economics? Check all that apply.

Positive economics is a branch of economics that deals with what is and the analysis of facts without any value judgments. Here are the applicable statements:

  • A: It can be rejected or amended depending on the evidence available – This is correct because positive economics relies on empirical evidence and can be adjusted based on new data.
  • B: It depends upon value judgments – This is incorrect. Positive economics is objective and does not depend on personal opinions or values.
  • C: It is not factual – This is also incorrect. Positive economics is based on factual statements and is focused on the reality of economic situations.
  • D: The predictions are testable – This statement is correct as positive economics involves testable hypotheses and predictions that can be verified through observation or experimentation.

In summary, the correct responses are A and D. Positive economics focuses on facts and provides a framework for objective analysis.

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