Which type of economic analysis is most closely associated with the statement: 'Broad government intervention works to achieve equal results and to maintain an ordered liberty'?

• A. Descriptive analysis
• B. Empirical analysis
• C. Normative analysis
• D. Positive analysis

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the types of economic analysis. There are mainly two broad categories: positive analysis and normative analysis.
2. Step 2: Positive analysis deals with objective, fact-based statements that can be tested or validated, such as 'If the government raises taxes, consumption will decrease.'
3. Step 3: Normative analysis involves value judgments or opinions about what ought to be, often including words like 'should' or 'works to achieve,' reflecting goals or ideals.
4. Step 4: The statement 'Broad government intervention works to achieve equal results and to maintain an ordered liberty' expresses a value judgment about what the government should do, which aligns with normative analysis.
5. Step 5: Therefore, identify that this statement is most closely associated with normative analysis because it prescribes a desired outcome rather than describing or testing a fact.