Which of the following is an example of positive economics?
A) Our nation spends too much on the military.
B) The inflation rate is too high, and the central bank must take measures to lower it.
C) Median home prices have been stable for nearly six months.
D) Our environmental laws are too weak.

Question

Quizplus · Accepted Answer

Positive economics deals with objective analysis and descriptions without making judgments. Choice C, stating a fact about median home prices, is an example of positive economics because it describes an economic situation without expressing a judgment or prescribing a policy.

Which of the Following Is an Example of Positive Economics