Normative economics is
A) analysis involving value judgments about economic policies; or a statement of "what ought to be."
B) analysis that is strictly limited to making either purely descriptive statements or scientific predictions.
C) analysis of the behavior of the economy as a whole.
D) decision making undertaken by households and business firms.

Question

Quizplus · Accepted Answer

Normative economics involves making value judgments about economic policies and making statements about "what ought to be." It goes beyond purely descriptive analysis or scientific predictions and involves evaluating the desirability of different economic outcomes. Choices B, C, and D do not accurately describe normative economics.

Normative Economics Is