Question

Positive economic analysis __________

• A. Compares the desirability of alternative government policy outcomes
• B. Provides a framework within which we can study how some groups are better off than others
• C. Analyzes the sources of improvements in the standard of living that result from favourable government policies
• D. Is based on observed cause and effect relationship in the economy

Answer 1

The correct option is D Is based on observed cause and effect relationship in the economy

this question states relation cause & effect as below: n between Positive economic analysis is based on observed and experimented facts which yields cause and effect relationship, that is verifiable.