Which of the following claims involves positive analysis?
A)Those with high incomes do not pay a fair share of their income in taxes.
B)Firms should pay workers based on their productivity.
C)Higher prices will cause the purchasing power of income to fall.
D)Wages should be higher so that those who work have a living wage.

Question

Quizplus · Accepted Answer

Positive analysis involves statements that can be tested, proven, or disproven through the examination of facts or data. Claim C, "Higher prices will cause the purchasing power of income to fall," is a statement about what is likely to happen given certain conditions, and it can be tested and verified through economic data and analysis.

Which of the Following Claims Involves Positive Analysis