Normative economics:
A)tells us what has been, is, and will be.
B)is concerned with value judgments.
C)determines which social state is most desirable.
D)establishes fixed standards for behaviour.

Question

Quizplus · Accepted Answer

Normative economics is concerned with making value judgments and prescribing what should be, rather than describing what is or will be. Therefore, option B is the correct answer. Option A is incorrect because normative economics does not describe what has been, is, and will be, but rather what should be. Option C is partly correct, as normative economics does involve determining which social state is most desirable, but this is not the sole focus. Option D is incorrect because normative economics does not establish fixed standards for behavior, but rather prescribes what should be done based on value judgments.

Normative Economics