Which of the following would be a concern of normative economics?
A) measuring the actual distribution of income in the economy
B) recommending a change in government policy to make the distribution of income more equitable
C) determining the impact of higher income taxes on the distribution of income
D) determining the impact of a lower federal budget deficit on the distribution of income
E) measuring the change in the nation's income distribution since 1960

Question

Quizplus · Accepted Answer

Normative economics deals with making value judgments and recommendations for government policies, which is exactly what option B is doing by recommending a change in government policy to make the distribution of income more equitable. Options A, C, D, and E are all examples of positive economics, which deals with describing and analyzing economic phenomena rather than making value judgments.

Which of the Following Would Be a Concern of Normative