Deciding what the distribution of income should be is an example of normative economics.

Answer the following statement true (T) or false (F)

True

This statement questions what the goals of the economy should be and is thus an example of normative economics.

Economics

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Explain why firms in monopolistic competition have excess capacity in the long run

What will be an ideal response?

Economics

The benefits paid by the largest pension program in the United States are: a. not adjusted for changes in the price level

b. adjusted for changes in the price level. c. revised every five years. d. adjusted for changes in the nominal rate of interest. e. adjusted for changes in the real rate of interest.

Economics