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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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