Identify the positive and normative economic analyses.

Question

Which of the following two statements involves positive economic analysis and which normative? How do the two kinds of analysis differ? Statement #1: Gasoline rationing (allocating to each individual a maximum amount of gasoline that can be purchased each year) is poor social policy because it interferes with the workings of the competitive market system. This statement involves OA. positive analysis because it states what the effect of gasoline rationing is. OB. positive analysis because it states what the effect of gasoline rationing is and normative analysis because it makes a value judgment about the desirability of the rationing policy. OC. normative analysis because it describes what gasoline policy ought to be. D. positive analysis because it makes a value judgment.

Answer 1

Question

Chapter 1, Problem 2RQ

(a)

To determine

Identify the positive and normative economic analyses.

(b)

To determine

Identify the positive and normative economic analyses.

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