What does positive economics refer to?

Positive economics refers to the branch of economics that deals with objective analysis and factual statements. It focuses on what is or what will be, based on empirical evidence and data. This means that positive economics is concerned with descriptions, predictions, and explanations of economic phenomena that can be tested and validated through observation and statistical methods.

For example, a statement such as "An increase in the minimum wage will lead to higher unemployment rates among unskilled workers" can be investigated using data, making it a positive economic statement. Its validity can be assessed based on factual evidence and statistical analysis.

The other options do not accurately capture the essence of positive economics. Matters based on personal opinion refer to subjective perspectives, which are more in line with normative economics. Variations in consumer demand, while they can be studied within the framework of positive economics, do not define what positive economics is. Finally, theories that cannot be tested are outside the scope of positive economics, as this field specifically emphasizes testable and verifiable claims.