Positive analysis in economics:
A)makes prescriptions about how the economy should work.
B)involves model building based on assumptions that have been proven true.
C)is the branch of economic analysis that describes how the economy actually works.
D)is the same as positive externalities.

Question

Quizplus · Accepted Answer

Positive analysis in economics is the branch of economic analysis that describes how the economy actually works, without making any value judgments or prescriptions about how it should work. It involves developing models based on empirical evidence and testing them against real-world data to understand how economic systems function.

Positive Analysis in Economics