Which of the following represents an example of positive analysis?
A)How will the equilibrium price of corn be affected by a government subsidy?
B)What is the best way to assist low-income families with affordable housing?
C)Would taxes on emissions be the best way to reduce pollution?
D)How can the government best design a tax cut?

Question

Quizplus · Accepted Answer

Positive analysis deals with factual statements and predictions based on those facts. Option A deals with a specific question about the impact of government subsidies, which can be answered through data analysis and economic theory. The other options involve normative analysis, which involves value judgments and opinions. Positive analysis is concerned with understanding and predicting economic outcomes based on facts and data. Option A focuses on analyzing the impact of a government subsidy on the equilibrium price of corn, which is an example of positive analysis. Option B is a normative question, as it involves determining the "best" way to assist low-income families. Option C is also normative, as it asks for the "best" way to reduce pollution. Option D is also normative, as it involves determining how the government "should" design a tax cut.

Which of the Following Represents an Example of Positive Analysis