Question

“Economics is what it ought to be” This statement refers to–

Answer 1

“Economics which is concerned with what it ought to be” is the normative form of economics. Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. Normative economic statements are opinion based, so they cannot be proved or disproved.