Unformatted text preview: of alternative decisions. It is assumed that an educated society will make the most rational choices for themselves, and exercise those choices in the marketplace. Positive economic analysis strives to explain current economic phenomena as well as answering "what if" type questions without value judgement as answering what if type questions without value judgements . “That person is hungry.” What is the cost of feeding that person? What is the benefit that you or society will accrue if that person is fed? What is the cost of not feeding this person? What is the benefit from not feeding this person? Positive economics tries to objectively answer these questions by doing what is called a cost/benefit analysis 11 cost/benefit analysis....
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- Fall '10
- Economics, Positive Economics, Cost/Benefit Analysis, value judgements