Suppose an economist advises the government to disallow a proposed merger between Wendy's and McDonald's because she thinks the fast-food industry ought to be as competitive as possible. This advice is an example of
A) positive economics
B) normative economics
C) market discrimination
D) econometric analysis
E) macroeconomic analysis

Question

Quizplus · Accepted Answer

The advice is an example of normative economics because it reflects a value judgment about what ought to be, rather than an objective analysis of what is.

Suppose an Economist Advises the Government to Disallow a Proposed