Positive Statements or Positive Economics

Positive statements, or positive economics, are the part of economics that attempts to describe economic realities as they are. This involves descriptive analysis and testable hypotheses regarding cause-and-effect relationships between different economic variables.

Testable Statements

Positive statements are not necessarily optimistic; rather, they are descriptive and can, in principle, be confirmed or refuted by examining evidence and testing the truth of the statements.

Most of economics is positive, as it seeks, through theories, to describe economic reality, explain different phenomena, and test these against observations to build models that are as accurate as possible.