The correct answer is: B. concerns itself only with hypothesis which can generally be tested
Positive economics is the branch of economics that deals with what is. It is concerned with the description and prediction of economic phenomena, and with the analysis of economic policies. Positive economics is based on the assumption that there is an objective reality that can be observed and measured.
Normative economics is the branch of economics that deals with what ought to be. It is concerned with the evaluation of economic policies, and with the formulation of economic goals. Normative economics is based on the assumption that there are different values that people can hold, and that there is no single objective standard for evaluating economic policies.
Option A is incorrect because positive economics does not discuss the ethical implications of its laws. Option C is incorrect because positive economics is not based on the value judgements of economists. Option D is incorrect because positive economics does not consider carefully the political significance of its laws for a democratic society.