Asked by Mrs. Steph Bishop on Jul 12, 2024
Verified
An example of normative analysis is studying
A) how market forces produce equilibrium.
B) surpluses and shortages.
C) whether equilibrium outcomes are socially desirable.
D) income distributions.
Normative Analysis
A type of analysis concerned with what ought to be, focusing on value judgments and statements of what is good or bad.
Socially Desirable
Actions or policies that are beneficial for society as a whole, often considering long-term benefits over short-term gains.
- Describe the influence of state actions, including price ceilings and floors, on the surplus experienced by consumers and producers.
Verified Answer
AR
Aparna ReddyJul 15, 2024
Final Answer :
C
Explanation :
Normative analysis involves value judgments about what is desirable or what ought to be. Studying whether equilibrium outcomes are socially desirable involves making judgments about what is good or bad for society, which is characteristic of normative analysis.
Learning Objectives
- Describe the influence of state actions, including price ceilings and floors, on the surplus experienced by consumers and producers.