Suppose an economist uses an econometric model to estimate the demand for peanutbutter in the United States. This modeling is an example of
A) economic policy making
B) normative economics
C) positive economics
D) macroeconomic analysis
E) descriptive economic analysis

Question

Quizplus · Accepted Answer

Estimating the demand for peanut butter using an econometric model is an example of positive economics, which involves the description, quantification, and explanation of economic phenomena without making judgments about what ought to be.

Suppose an Economist Uses an Econometric Model to Estimate the Demand