A government leader determines that the 5% unemployment rate is too high. She asks her staff to research policy options to reduce the rate and a few weeks later is given four options. Each option would reduce the rate by a different amount and at a different cost. The leader studies the options and chooses the one she feels is best for the country. In order, what types of analysis were used in this three-stage chain of events?

Question

Quizplus · Accepted Answer

The initial determination that a 5% unemployment rate is too high is a normative statement as it reflects a value judgment. The research conducted by the staff to identify policy options is a positive analysis as it is focused on objective data and facts. Finally, the government leader chooses a policy option based on her judgment of what is best for the country, which is another normative statement. Therefore, the correct sequence of analysis is normative, positive, normative. This is best reflected in option C.

A Government Leader Determines That the 5% Unemployment Rate Is