Final answer:
The claim that Aristotle referred to Economics as 'the dismal science' is false. The term was actually made popular by Thomas Carlyle, referencing Thomas Malthus's economic ideas. Economics is a social science dealing with choices made in the face of scarcity.
Step-by-step explanation:
The statement 'Aristotle referred to Economics as "the dismal science"' is FALSE. It was not Aristotle who coined this term, but rather it was the historian Thomas Carlyle who used it in the 19th century, in reference to the ideas of the economist Thomas Malthus. Economics, as defined by modern standards, is the social science that examines how people make choices in the face of scarcity and how these decisions affect the use of resources.
It is important to understand the distinction between positive statements, which are factual and can be tested, and normative statements, which are based on values and cannot be factually proven true or false. For example, when economists analyze data to determine whether the benefits of a proposed subway system exceed the costs, they perform a positive analysis. However, when discussing whether wealthy nations should provide more for the less fortunate, they are making a normative analysis.
Economics explores the concept of scarcity, which highlights that human wants and needs exceed the available resources. Therefore, economics seeks to understand and explain the decisions made by individuals, families, businesses, and societies regarding the allocation of these scarce resources.