Which of the following statements is an example of positive economic analysis?
A) To ensure the highest graduation rates, colleges should limit enrollment.
B) As tuition rates increase, fewer students are enrolling in college.
C) Living in a dorm is too expensive and colleges should subsidize the cost of housing for their students.
D) Universities should offer a wider variety of extracurricular activities to broaden the horizons of their student bodies.

Question

Quizplus · Accepted Answer

Positive economic analysis deals with what is or what will be, based on factual statements or cause-and-effect relationships, without making judgments about what ought to be. Statement B, "As tuition rates increase, fewer students are enrolling in college," is a factual statement that describes a cause-and-effect relationship without making a value judgment, making it an example of positive economic analysis.

Which of the Following Statements Is an Example of Positive