An example of normative analysis is studying
A)how market forces produce equilibrium.
B)surpluses and shortages.
C)whether equilibrium outcomes are socially desirable.
D)income distributions.

Question

Quizplus · Accepted Answer

Normative analysis involves value judgments about what is desirable or what ought to be. Studying whether equilibrium outcomes are socially desirable involves making judgments about what is good or bad for society, which is characteristic of normative analysis.

An Example of Normative Analysis Is Studying