Question

Normative economic analysis _________.

• A. are observations that quantify what normally occurs when workers, consumers, firms and investors interact in the market
• B. quantifies possible outcomes so that policymakers can rank the desirability of policy recommendations and their impact on the economy
• C. analyzes what policies and economic outcomes are best for society, and is often accompanied by value judgments
• D. is based on cause and effect relationships observed in the economy

Answer 1

The correct option is C analyzes what policies and economic outcomes are best for society, and is often accompanied by value judgments

Normative economics analyses what should be base of the subject according to the belief through valued judgement that describes the fairness of the subject on public policy.