What type of analysis is concerned with evaluating whether a policy should be applied?

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Normative analysis is focused on evaluating policies based on subjective value judgments about what ought to be. It considers the implications of a policy and makes recommendations about whether it should be implemented based on ethical, moral, or societal standards. This type of analysis often involves weighing the benefits and costs of a policy to assess its desirability or effectiveness in achieving desired outcomes for society.

In contrast, positive analysis is descriptive and aims to explain and predict economic behavior without making any value judgments about the policies being studied. Constructive analysis is not a widely recognized term in economics and does not specifically refer to any formal analytical approach. Descriptive analysis deals with presenting facts and data without offering recommendations or evaluations for policy. Thus, the focus on subjective evaluations and recommendations firmly places normative analysis as the correct answer to the question regarding the evaluation of whether a policy should be applied.

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