Classify each of the statements as an example of positive or normative analysis.. The sugar quota in the United States costs consumers $6.08 billion a year. Positive Higher tariffs on imported automobiles would decrease the demand for Normative foreign made cars. International trade should be be limited because it can cause some workers Normative to lose their jobs. International trade makes some people better off and some people Normative worse off. The U.S. should impose import quotas in the market for consumer Positive electronics to help domestic workers. The sugar quota in the U.S. is good public policy and should be Positive made stronger.
Positive analysis refers to the objective and factual study of the world as it is, without making any value judgments or recommendations about what ought to be. It involves the use of empirical data, statistical analysis, and economic theory to describe and explain economic phenomena and predict their outcomes. It aims to provide a clear understanding of the economic reality and help policymakers make informed decisions based on empirical evidence and economic analysis.
Normative analysis refers to the subjective and value-based study of the world as it should be, based on moral, ethical, or political principles. The normative analysis involves making judgments about what ought to be and prescribing actions that align with those values. In economics, normative analysis is used to evaluate economic policies or outcomes based on ethical, political, or social objectives.
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