Maneesha has completed an analysis of the market for a prescription medication. she has determined that the policymaker should act to prevent an increase in the price of this drug on the grounds that the mainly elderly consumers of the medication already have spent their lives paying too much for pharmaceuticals. they ought not to have to pay higher prices, maneesha has concluded, so the government should act to halt any further price increases in this market. has maneesha applied positive or normative economic analysis?

The answer is "normative economic analysis".

The difference between positive economics and normative economics may appear to be basic, yet it isn't generally simple to separate between the two. Positive economics is target and actuality based, while normative economics is subjective and esteem or value based.

Positive economics explanations must have the capacity to be verified or negated. Normative economics proclamations are feeling based, so they can't be demonstrated or invalidated. And truth is that many generally acknowledged statements that individuals hold as reality are really value based.

In this case, Maeesha has applied normative economic analysis. Normative economics are very subjective and based on values. They are generally formed from opinions and can neither be proven or disproven. Positive economics are much more objective and based on facts, they can be proven and tested.