A positive statement is concerned primarily with:

• A. describing and explaining economic phenomena as they are
• B. prescribing policy recommendations based on ethical considerations
• C. making value judgments about what ought to be
• D. expressing personal opinions about economic outcomes

Answer: (A)

Verified step by step guidance

1. Understand the difference between positive and normative statements in economics. Positive statements are objective and fact-based, describing how the economy actually works without any judgment.
2. Recognize that positive statements focus on describing and explaining economic phenomena as they are, relying on data and evidence.
3. Note that normative statements, in contrast, involve value judgments and opinions about what ought to be, often including ethical considerations and policy recommendations.
4. Identify that expressing personal opinions or prescribing policies based on ethics falls under normative economics, not positive economics.
5. Conclude that the correct characterization of a positive statement is that it describes and explains economic phenomena as they are, without making judgments or recommendations.