Suppose two economists agree about who would be helped or hurt by certain legislation,but disagree about whether the legislation would be a good idea.These disagreements
A) are positive in nature
B) are minor and rarely lead to different policies or conclusions
C) are normative in nature
D) occur as the result of a mistake made by an economist
E) occur because economic models are more complex,and subject to error,than the real world

Question

Quizplus · Accepted Answer

When economists agree about the factual implications of a policy but differ on whether it is desirable, they are engaging in normative analysis. This is because they are making value judgments that are not based purely on objective analysis but on personal beliefs and values. These types of disagreements are common in economics, and they often reflect broader ideological or philosophical differences rather than just technical disagreements over the facts.

Suppose Two Economists Agree About Who Would Be Helped or Hurt