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.

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.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Concept explainers

Laffer Curve Analysis

In terms of economics, the Laffer curve was popular among those economists who were or who belonged to the supply side of the economic peripheral. This concept was popularized by the famous supply-side economist known as Arthur Laffer. This curve illustrated the relationship between the tax rates and government revenue. It is already known that the tax which the public or individuals residing in an economy bear is the revenue or income of the government with the help of which the government does all the necessary works in the society, which is beneficial for the economy.

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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.

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