Which of the following statement is correct for positive economic analysis ?

We study whether these mechanisms are desirable or not We study when the different mechanism function We study how the different mechanism function We study the particular mechanism function

We study how the different mechanism function

The correct answer is option (3) : We study how the different mechanism function In positive economic analysis, we study how the different mechanisms function, and in normative economics, we try to understand whether these mechanisms are desirable or not.