Positive economics is a fact-based analysis of what is occurring in an economy, without making prescriptions of what should or should not be happening.

Economic man represents a rational actor, aiming to maximize utility and satisfaction. Discover his role and the impact the concept has in economic theories and models.

Economists develop economic models to explain consistently recurring relationships. Their models link one or more economic variables to other economic variables (see “Economic Models,” p. 8). For ...