"Privatization of government owned industries is likely to increase unemployment in the short run" is a ________ statement about ________ policy.

Question

Quizplus · Accepted Answer

Positive analysis aims at determining only the economic consequences of a particular event, not whether those consequences are desirable. Structural policy refers to government policies aimed at changing the underlying structure or institutions of the economy. Normative analysis addresses the question of whether a policy should be used, and inevitably involves the values of the person doing the analysis. Normative statement comments on the desirability of an action, and often includes terms such as should.

"Privatization of Government Owned Industries Is Likely to Increase Unemployment