Which type of economic analysis is President Jefferson showing support for in this excerpt?

• A. Descriptive analysis, which summarizes economic data without interpretation
• B. Positive analysis, which focuses on objective facts and cause-and-effect relationships
• C. Normative analysis, which involves value judgments and opinions about what ought to be
• D. Marginal analysis, which examines the impact of small changes in economic variables

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definitions of the types of economic analysis mentioned: Descriptive analysis summarizes data without interpretation; Positive analysis focuses on objective facts and cause-effect relationships; Normative analysis involves value judgments about what ought to be; Marginal analysis studies the effects of small changes in variables.
2. Step 2: Identify the key characteristics of the excerpt from President Jefferson to determine which type of analysis it aligns with, focusing on whether it presents objective facts, value judgments, or data summaries.
3. Step 3: Compare the excerpt's content to the definitions, checking if it states facts and cause-effect relationships without expressing opinions or value judgments.
4. Step 4: Recognize that if the excerpt emphasizes objective facts and cause-effect relationships, it corresponds to Positive analysis.
5. Step 5: Conclude that President Jefferson is showing support for Positive analysis based on the nature of the excerpt's content.