In the context of positive and normative analysis, what does it mean to say that two variables are positively associated?

• A. The two variables always have the same value.
• B. The two variables have no relationship with each other.
• C. As one variable increases, the other variable also increases.
• D. As one variable increases, the other variable decreases.

Answer: (C)

Verified step by step guidance

1. Understand the difference between positive and normative analysis: Positive analysis deals with objective, fact-based statements about how things are, while normative analysis involves subjective opinions about how things should be.
2. Focus on the concept of association between two variables, which describes how one variable changes in relation to another.
3. Recognize that a positive association means that when one variable increases, the other variable also increases, indicating a direct relationship.
4. Contrast this with a negative association, where an increase in one variable leads to a decrease in the other, indicating an inverse relationship.
5. Note that saying two variables are positively associated does not mean they always have the same value, but rather that their movements tend to be in the same direction.