Normative economic analysis addresses
A) what ought to happen.
B) factual issues.
C) the cause-and-effect analysis of actions and their consequences.
D) are potentially testable.

Question

Quizplus · Accepted Answer

Normative economic analysis focuses on prescribing what should happen or what is desirable, rather than describing what is currently happening (factual issues). Cause-and-effect analysis of actions and consequences is more characteristic of positive economic analysis. Normative economic statements are not testable in the same way that positive statements are.

Normative Economic Analysis Addresses