Question

Statement​ #2: Gasoline rationing is a policy under which more people are made worse off than are made better off. This statement involves

A. normative analysis because it describes whether the gasoline rationing policy makes people better or worse off.
B. normative analysis because it describes what gasoline policy ought to be.
C. positive analysis because it states what the effect of gasoline rationing is.
D. 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.

Answer 1

Answer:

C. positive analysis because it states what the effect of gasoline rationing is.

Explanation:

Positive analysis involves facts and is a statement which can be verified, and is just not a mere opinion of economists based on any kind of judgement.

In the given statement,

It states what gasoline policy is and what are its effects, it does not involve any suggestion, judgement, or opinion.

It only involves the pure facts that are traceable about the statement.

Thus, it is only positive in nature, and not at all normative.

Correct option is:

Statement C