Which of the Following Statements About Positive Economic Analysis Is

question 111

Multiple Choice

Which of the following statements about positive economic analysis is true?

• A)Positive analysis uses an economic model to estimate the costs and benefits of different course of actions.
• B)There is much less disagreement among economists over normative economic analysis than over positive economic analysis.
• C)There is much more disagreement among economists over positive economic analysis than over normative economic analysis.
• D)Unlike positive economic analysis,normative economic analysis can be tested.

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Definitions:

Price Index

A statistical measure that examines the weighted average of prices of a basket of consumer goods and services, showing trends over time.

Base Year

A specific year against which economic, financial, or statistical data is standardized or indexed, allowing for comparison over time.

Consumer Price Index

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.

Inflation Rate

The pace at which the overall price level for goods and services increases, diminishing the buying power.