Correct
Try again
Try again
Try again
Solution:
An example of positive economic analysis would be an analysis of the relationship between the price of food and the quantity purchased. Positive economics is concerned with describing and explaining economic phenomena without making value judgments.
It is based on facts and data and can be tested and verified.
In contrast, normative economics involves making value judgments about what ought to be done in the economy. Examples of normative economics include determining how much income each person should be guaranteed or deciding how to distribute the output of the economy.
Correct option is (a)