Which of the following is an example of disaggregating an economic problem using positive and normative analysis?

• A. Separating facts from value judgments to clarify policy debates
• B. Grouping all economic issues together without distinction
• C. Focusing solely on historical data without considering future implications
• D. Ignoring ethical considerations in economic analysis

Answer: (A)

Verified step by step guidance

1. Understand the difference between positive and normative analysis: Positive analysis deals with objective, fact-based statements about the economy (what is), while normative analysis involves subjective value judgments about what ought to be.
2. Recognize that disaggregating an economic problem means breaking it down into parts to analyze separately, especially separating factual information from value-based opinions.
3. Identify that separating facts from value judgments helps clarify policy debates by distinguishing what can be empirically tested from what depends on personal or societal values.
4. Evaluate each option by checking if it involves this separation: grouping all issues together or ignoring ethical considerations does not separate facts from values, and focusing only on historical data ignores normative aspects.
5. Conclude that the example of disaggregating an economic problem using positive and normative analysis is the one that explicitly mentions separating facts from value judgments to clarify policy debates.