An Example of Positive Analysis Is Studying

question 6

Multiple Choice

An example of positive analysis is studying

• A)how market forces produce equilibrium.
• B)whether equilibrium outcomes are fair.
• C)whether equilibrium outcomes are socially desirable.
• D)if income distributions are fair.

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Definitions:

Behavioral Finance

A field of finance that proposes psychology-based theories to explain stock market anomalies and investing behaviors.

Managerial Finance

The branch of finance that focuses on the managerial significance of financial techniques, analysis, and decisions for an organization.

Severe Recession

A prolonged period of economic decline characterized by a significant drop in economic activity, high unemployment, and a contraction in the GDP.

Retail Toy Store

A business that specializes in selling toys directly to consumers.