Policies based on normative economic ideas tend to increase economic efficiency and improve equity.

Question

Quizplus · Accepted Answer

Normative economics is subjective, focusing on what ought to be or what should be done based on value judgments, rather than what is the most efficient or equitable from an objective standpoint. It does not inherently increase economic efficiency or improve equity, as it depends on the specific values and goals being promoted.

Policies Based on Normative Economic Ideas Tend to Increase Economic