A policymaker arguing that a policy should be adopted because it improves society overall is illustrating which type of economics?

• A. Positive economics
• B. Economics
• C. Normative economics
• D. Economy

Answer: (C)

This question tests the distinction between describing economic realities and making value-laden recommendations. A policymaker claiming a policy should be adopted because it makes society better is making a prescriptive claim about what ought to be done, based on judgments about welfare and values. That’s normative economics, which focuses on what should happen and how policies affect social welfare.

Normative economics expresses judgments about what is desirable, often tied to questions of equity and welfare, rather than just reporting outcomes. Positive economics, by contrast, would analyze the policy’s effects using data and evidence without saying what ought to be done. So choosing normative economics fits because the statement is about what policy ought to do for society, not merely about what would happen if implemented.