An economic study concludes that an investment tax credit would increase business investment next year. This is an example of:

Question

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The economic study is providing a statement of fact that an investment tax credit would increase business investment next year. This is an example of positive analysis, which is based on evidence and does not involve value judgments or opinions. Normative analysis, on the other hand, involves making value judgments and prescribing a course of action. Negative economic analysis would focus on the potential downsides or drawbacks of an investment tax credit. The fallacy of composition involves assuming that what is true for one individual or firm is true for the entire group or economy.

An Economic Study Concludes That an Investment Tax Credit Would