The positive economic analysis deals with the variablesa) As they should beb) As they arec) As they are expectedd) As they seem to beCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories.

Answer

Well positive economics studies the facts of life i.e it deals wid things as they are...or I should say it deals wid what are the economic problems and how are they actually solved...lets understand wid example...prices in Indian economy are constantly rising and there are inequalities of income in our economy...

Answer

Positive economics deals with what the economic problems are and how are they actually being solved. It deals with everything as it is, verifiable by data.

Answer

Aap apna number dijiye

Answer

Positive Economic Analysis

Positive economic analysis refers to the examination of economic variables and phenomena as they are, without any value judgments or opinions. It focuses on describing and explaining the current state of the economy based on observable data and facts.

The Variables and Their Treatment:

The question presents four options for how the variables should be treated in positive economic analysis. Let's examine each option and understand why option 'B' is the correct answer.

a) As they should be:
Treating variables as they 'should be' implies bringing in normative judgments and opinions about how the variables ought to be. This approach goes beyond the scope of positive economic analysis, which aims to be objective and value-free.

c) As they are expected:
Treating variables as they are expected to be involves incorporating predictions or forecasts about their future behavior. While this approach may be relevant in other forms of economic analysis, positive economic analysis focuses solely on the present state of the variables based on available data.

d) As they seem to be:
Treating variables as they seem to be implies relying on subjective perceptions or appearances, which may not always align with the actual data. Positive economic analysis aims to provide an accurate and objective assessment of variables, based on verifiable evidence.

b) As they are:
Option 'B' is the correct answer because it aligns with the principles of positive economic analysis. This approach involves examining and analyzing variables as they currently exist, without introducing personal opinions, expectations, or subjective judgments. It focuses on gathering and interpreting data to provide an objective understanding of the economic situation.

Conclusion:

Positive economic analysis is a valuable tool for understanding and explaining the current state of the economy. By treating variables as they are, without introducing personal opinions or expectations, it provides an objective assessment based on observable data. This approach helps economists and policymakers make informed decisions and formulate effective economic policies.

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