Which kind of economics explains the phenomenon of cause and effect relationship?

Normative
Positive
Micro
Macro

The correct answer is B. Positive economics.

Positive economics is the branch of economics that deals with the description and explanation of economic phenomena. It is concerned with what is, rather than what ought to be. Positive economics makes predictions about the consequences of economic policies and events, and it can be used to evaluate the effectiveness of those policies.

Normative economics, on the other hand, is concerned with what ought to be. It makes judgments about the desirability of economic outcomes, and it can be used to make recommendations for economic policy.

Microeconomics is the branch of economics that deals with the behavior of individual economic units, such as households and firms. It is concerned with the allocation of scarce resources among competing uses, and it can be used to explain the prices of goods and services.

Macroeconomics is the branch of economics that deals with the economy as a whole. It is concerned with the growth, inflation, and unemployment of an economy, and it can be used to explain the performance of an economy over time.

In conclusion, positive economics is the branch of economics that deals with the description and explanation of economic phenomena. It is concerned with what is, rather than what ought to be. Positive economics makes predictions about the consequences of economic policies and events, and it can be used to evaluate the effectiveness of those policies.

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