Which of the following most clearly distinguishes between positive and normative economics?

a. Positive economics is the study of what ought to be; normative economics is concerned with the facts.
b. Positive economics is the study of goods that are scarce; normative economics is concerned with goods that are not scarce.
c. Positive economics is the study of supply and demand in narrowly defined markets such as the market for shoes; normative economics focuses on highly aggregated markets such as the market for all consumer products.
d. Positive economics is the study of the facts; normative economics is concerned with what ought to be.

ANSWER:

d. Positive economics is the study of the facts; normative economics is concerned with what ought to be.