Normative economics is an approach to economics that
A) seeks to understand behavior and the operation of systems without making judgments.
B) analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe preferred courses of action.
C) applies statistical techniques and data to economic problems.
D) examines the role of government in the economy.

Question

Quizplus · Accepted Answer

Normative economics involves making value judgments about economic policies or conditions, suggesting what should be done based on those judgments. It evaluates outcomes as good or bad and prescribes actions, unlike positive economics, which seeks to understand economic behavior without making judgments.

Normative Economics Is an Approach to Economics That