To evaluate the potential impact of changes to its SUV business, Ford Motor Company would use:
A) normative economic analysis.
B) positive economic analysis.
C) negative economic analysis.
D) arbitrage analysis.

Question

Quizplus · Accepted Answer

A positive economic analysis would involve analyzing the actual market trends and consumer demand for SUVs, as well as factors such as fuel prices and regulations. This type of analysis would provide Ford with information on the potential impact of changes to its SUV business, and help them make informed decisions based on the data. Normative economic analysis involves making value judgements about what should be done, while negative economic analysis focuses on identifying problems or weaknesses in a system. Arbitrage analysis would not be relevant in this situation.

To Evaluate the Potential Impact of Changes to Its SUV