Which of the following steps in evaluating a public policy is not in the realm of positive analysis?
A)Determination of the effects of the policy
B)Determination of the magnitudes of the effects
C)A judgment that the effects of the policy are desirable or undesirable
D)Stating a hypothesis based on sound economic theory

Question

Quizplus · Accepted Answer

Positive analysis deals with objective statements and focuses on describing or predicting economic outcomes without making judgments about their desirability. Option C, making a judgment that the effects of the policy are desirable or undesirable, is a normative analysis because it involves value judgments about what ought to be.

Which of the Following Steps in Evaluating a Public Policy