An example of positive analysis is studying
A)how market forces produce equilibrium.
B)whether equilibrium outcomes are fair.
C)whether equilibrium outcomes are socially desirable.
D)if income distributions are fair.

Question

Quizplus · Accepted Answer

Positive analysis focuses on describing and explaining how economic phenomena work, rather than making normative judgments about whether they are good or bad, fair or unfair. Studying how market forces produce equilibrium is an example of positive analysis because it describes a factual process without making any value judgments about the outcome.

An Example of Positive Analysis Is Studying