In the context of economics, what does the task verb 'evaluate' typically require you to do?

In economics, when you see the task verb "evaluate," it means you need to carefully examine a situation or a claim and then express your judgment about it. This involves looking at both the positive and negative aspects, considering different viewpoints, and using evidence to support your opinion. For example, if you're asked to evaluate the impact of a new tax policy, you would discuss how it could benefit the government by increasing revenue but might also hurt low-income families by reducing their disposable income. Ultimately, your answer should show that you understand the complexities of the issue and can weigh the pros and cons before reaching a conclusion. This helps you demonstrate critical thinking and a deeper understanding of economic concepts.