How useful is economic analysis in solving complex social problems?
A) It is reliable in analyzing problems, and can usefully serve as the "final word" on solutions.
B) It is unreliable for understanding much of anything about social problems, and cannot offer much advice.
C) It is useful in clarifying options, but the final decision often rests on ethical decisions about which people differ.
D) It is useful in understanding economic problems but is only useful within that very narrow boundary.
E) It is not useful because economists agree on so little when they use their analysis.

Question

Quizplus · Accepted Answer

Economic analysis can provide valuable insights into the options available for solving complex social problems, but ultimately the decision about which solution to pursue often relies on ethical judgments and values that are beyond the scope of economic analysis. Therefore, while economic analysis can be helpful in clarifying the choices available, it cannot serve as the final word on solutions to social problems.

How Useful Is Economic Analysis in Solving Complex Social Problems