Which of the Following Statements About Normative Analysis Is Correct

question 62

Multiple Choice

Which of the following statements about normative analysis is correct?

• A)Normative analysis, because it is based on opinion, rarely employs any positive analysis when prescribing a solution to a given problem.
• B)Normative analysis typically cannot be trusted because it is only someone's opinion.
• C)Normative analysis ignores exogenous variables when making predictions.
• D)Normative analysis typically focuses on issues of social welfare.

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Definitions:

Worker

An individual engaged in some form of productive labor, either as an employee, contractor, or self-employed person, contributing to the production of goods and services.

Producer Surplus

The difference between the amount a producer is paid for a good compared to the least amount they would accept to produce the good.

Tax

An inescapable financial demand or another sort of fee imposed on a taxpayer by an arm of the government to fulfill government spending requisites and diverse expenditures for public services.

Good

An item or product that can be bought, sold, or provided in an exchange and is intended to satisfy a want or need.