In clipper circuits, the labeling of terminals as positive or negative depends on the polarity of the input voltage. When the input voltage is positive, the upper terminal is labeled as + and the lower as -; this reverses when the input is negative. The confusion arises from the ability to flip the circuit, which can lead to different interpretations of terminal labeling. For a DC input of +20V, the output will reflect the clipping action of the circuit, while a -20V input will yield a different output based on the circuit configuration. Understanding the circuit orientation and the nature of the input voltage is crucial for accurate labeling and predicting output behavior.