In the context of positive and normative analysis, the task of top executives in making corrective adjustments includes which of the following?

• A. Calculating equilibrium prices using only factual information
• B. Describing economic relationships without making recommendations
• C. Collecting data on market trends without interpreting their implications
• D. Implementing policy changes based on value judgments and desired outcomes

Answer: (D)

Verified step by step guidance

1. Understand the difference between positive and normative analysis: Positive analysis deals with objective, fact-based statements about how the economy works, while normative analysis involves subjective value judgments about what ought to be done.
2. Recognize that top executives making corrective adjustments must go beyond just describing facts (positive analysis) and must incorporate value judgments to decide on actions (normative analysis).
3. Identify that calculating equilibrium prices or collecting data without interpretation are examples of positive analysis, which do not involve making policy decisions or recommendations.
4. Focus on the role of executives in implementing policy changes, which inherently requires normative analysis because it involves deciding on desired outcomes based on values and goals.
5. Conclude that the task of top executives in making corrective adjustments is best described as implementing policy changes based on value judgments and desired outcomes, combining both positive data and normative decision-making.