Normative economics
A) does not depend on market interactions.
B) only looks at the best parts of the economy.
C) examines how the economy actually works (as opposed to how it should work).
D) embodies value judgments.

Question

Quizplus · Accepted Answer

Normative economics involves making value judgments about how the economy should operate, as opposed to positive economics which focuses on how the economy actually functions. Thus, normative economics inherently embodies subjective value judgments.

Normative Economics