Positive economics: It studies the fact of life i.e it deals with 'things as they are'. It deals with what are the economic problems and how are they solved. It explains the cause and effect relationship and avoids giving suggestions.

Positive economics: It studies the fact of life i.e. it deals with 'things as they are'. It deals with what are the economic problems and how are they actually solved. It explains the cause and effect relationship and avoids giving suggestions. It asks the question 'What is'.

Normative economics deals with what ought to be or how the economic problems should be solved. It discusses what the desirable things are and how they should be realised. Thus it is suggestive in nature.
Forwarding trading in commodities ought to be banned to curb rising prices is the statement that is suggesting us a measure to make the situation desirable, thus the statement is normative in nature. 

The labor helps in the production of goods and services by providing the required skills and knowledge. And in return for this input in the production process, they demand something in return in the form of monetary benefits. The money or price given to them is thus called salaries and wages.  

The point of PPF that are attainable are called the attainable combinations. The points inside and on the PPF are attainable for the firm. The points that lie inside the PPC means that the actual production is falling short of its capabilities and there is a wastage or inefficient utilization of resources. 

Positive statements study the facts of life i.e. it deals with 'things as they are'. It deals with what are the economic problems and how are they actually solved. It explains the cause and effect relationship and avoids giving suggestions.

Direct transfer of cash subsidy has increased allocative efficiency is a Positive statement. This is because Positive statements study the facts of life i.e. it deals with 'things as they are'. It deals with what are the economic problems and how are they actually solved. It explains the cause and effect relationship and avoids giving suggestions. Since, the given statement is not suggesting anything, it is positive in nature. 

The rate of production at which one product is substituted for another product while still keeping using a fixed supply of inputs efficiently is called the rate of Product Transformation. It is the ratio of units of a commodity sacrificed to gain an additional unit of another commodity. This is equal to the units sacrificed divided by units gained.

Positive statements study the facts of life i.e it deals with 'things as they are'. It deals with what are the economic problems and how are they actually solved. It explains the cause and effect relationship and avoids giving suggestions.

Inflation affects economies in various positive and negative ways. The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing the real burden of public and private debt, keeping nominal interest rates above zero so that central banks can adjust interest rates to stabilize the economy, and reducing unemployment due to nominal wage rigidity.

The concept of marginal usefulness grew out of an attempt by economists to explain the force of mind of cost. The term “marginal utility”, attributed to the Austrian economist Friedrich von Wiser by Alfred Marshall was a translation of Weser’s term “Grenznutzen”. Marginal utility theory examines the enlarge in satisfaction customers gain from consuming an extra unit of a good. Effectiveness is the idea that people get a certain level of satisfaction/happiness/utility from consuming goods and services. Marginal utility is the advantage of strong an extra unit.

The central problems of an economy deals with the allocation of its scarce uses, having alternative uses, for production of goods. The central problems are outlined as:

• What to produce? Consumer goods or capital goods?
  
• How to produce? Using labour or capital intensive techniques?
  
• For whom to produce? Rich people or poor people
  

The production possibilities frontier is downward sloping: producing more of one good requires producing less of others. The production of a good has an opportunity cost. As time passes, the production possibilities frontier shifts outward due to the accumulation of inputs and technological progress.