Normative economic analysis _____.
A)is concerned only with the facts
B)is a statement about the relationship between a policy change an outcome
C)judges the desirability of a policy change
D)does not involve value judgments

Question

Quizplus · Accepted Answer

Normative economic analysis involves value judgments and is concerned with assessing the desirability of a policy change, whereas positive economic analysis is concerned only with the facts and describing the relationships between variables. Choice A is incorrect as it refers to positive economic analysis. Choice B is somewhat accurate in that normative analysis often involves assessing the potential outcomes of a policy change, but it is not a statement about the relationship between them. Choice D is incorrect as it contradicts the definition of normative analysis involving value judgments.

Normative Economic Analysis _____