Which of the Following Statements About Positive Analysis Is Correct

question 22

Multiple Choice

Which of the following statements about positive analysis is correct?

• A)Positive analysis prescribes the best solution to an economic problem.
• B)Positive analysis predicts how an economic system will change over time.
• C)While normative analysis can be wrong, since it is often based on someone's opinion, positive analysis is always accurate.
• D)Since positive analysis is based on a model, and not the real world, it is mostly irrelevant.

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Definitions:

Conventional Level

A stage in moral development proposed by Lawrence Kohlberg, where an individual's sense of morality is tied to personal and societal relationships, and compliance with laws and norms.

Terminal Values

Fundamental goals or end-states that individuals strive to achieve in their lives, guiding their actions and judgments.

Instrumental Values

Values that influence the means to achieving an end, such as ambition and efficiency, guiding how we achieve our goals.

SMART Goals

Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, providing clear direction and facilitating goal attainment.