Which of the following two statements involves posi- tive economic analysis and which normative? How do the two kinds of analysis differ?
a. Gasoline rationing (allocating to each individual a maximum amount of gasoline that can be pur- chased each year) is poor social policy because it interferes with the workings of the competitive market system.
b. Gasoline rationing is a policy under which more people are made worse off than are made better off.