QUESTION 10 Normative economics O predicts the consequences

QUESTION 10 Normative economics O predicts the consequences of alternative actions. O answers the question \"What ought to be?\" O answers the question \"What is? O is the focus of most modern economic reasoning QUESTION 11 The collection and use of data to test economic theories is o descriptive economics mnirical economics

Solution

Normative economics : It is an approach to economics whereby we analyse outcomes , evaluate them , and may also prescribe a course of action . As for example : Should government provide free higher education ?

It asks \" what ought to be \" . The statements cannot be tested .

Answer : b) Answers the question : what ought to be ?\"