Question

"What ought to be?" is a subject matter of

• A. Positive Economics
• B. Normative Economics
• C. Both (A) and (B)
• D. None of these

Hint:

Think: Positive = Is (testable facts); Normative = Ought (value judgments).

Answer 1

The Correct Option is B

Positive economics deals with "what is"—objective, testable statements about facts and cause–effect relationships (e.g., if price rises, quantity demanded falls).
Normative economics deals with "what ought to be"—value-laden judgments and policy prescriptions based on goals or ethics (e.g., the government ought to subsidize education).
Since the phrase asks about what should happen, it belongs to the domain of normative economics.