Question

You work in the economic-development department of your city. The mayor asks you to conduct an analysis of a plan to increase parking-meter fees to $2.00 per hour. Your task is to determine whether the increase is a good idea. This project is an example of _____ economics.

Answer 1

Answer:

normative economics

Explanation:

The Mayor of your city asked you to perform an analysis to determine if the increase in price is a good or a bad idea, but there is no parameter to compare what good or bad means.

Normative economics focuses on good or bad things, or what should be done in order to be fair or less unfair in this case. While positive economics is based on facts that can be proven right or wrong, not on value judgements.