Which of the following should not be included in the analysis when making a decision using positive economics?

• A. Testable hypotheses
• B. Objective facts
• C. Personal value judgments
• D. Empirical data

Answer: (C)

Verified step by step guidance

1. Understand that positive economics focuses on objective analysis of economic phenomena, relying on testable hypotheses, empirical data, and objective facts to explain 'what is' rather than 'what ought to be.'
2. Recognize that personal value judgments involve subjective opinions about what should happen, which belong to normative economics rather than positive economics.
3. Identify that when making decisions using positive economics, you should include testable hypotheses, objective facts, and empirical data because they can be observed and tested.
4. Exclude personal value judgments from positive economic analysis because they are not testable or objective and reflect personal or societal preferences.
5. Conclude that the correct approach in positive economics is to base decisions on verifiable and objective information, avoiding subjective value judgments.