On October 20, 1987, some financial newspapers wrote editorials commenting on one of the worst stock market crashes in a century. Many offered suggestions about what the government should do in order to prevent a recession. These editorials were examples of:
A) positive economics.
B) microeconomics.
C) normative economics.
D) applied economics.

Question

Quizplus · Accepted Answer

These editorials are examples of normative economics because they involve value judgments about what the government ought to do to prevent a recession, rather than objective analysis based solely on data or models.

On October 20, 1987, Some Financial Newspapers Wrote Editorials Commenting