Question

Choose the statement that represents normative economic analysis.
A) Legalizing marijuana leads to increases in the number of pot smokers.
B) Children who grow up in households with more books are more successful in school.
C) If we raise the income tax on the super-rich, they will work less.
D) Global warming is America's most serious problem.

Answer 1

Answer:

The correct answer is:

B) Children who grow up in households with more books are more successful in school.

Explanation:

The normative economic analysis refers to the model in which a mechanism is studied looking for its possible results, depending on the variables around it. This analysis not only involves the technical evaluation of the situation or mechanism, but also includes the personal appreciation in a way in which ideal situations and ethics are present too.