Normative economic analysis refers to the branch of economics that deals with how things should be, or how economic outcomes ought to be. It involves making value judgments and recommendations based on subjective opinions and beliefs about what is desirable or optimal. In contrast, positive economic analysis focuses on describing and explaining economic phenomena as they are, without making judgments about whether they are good or bad.

Normative economic analysis is concerned with the evaluation of economic policies, decisions, and outcomes in terms of their desirability or social welfare. It aims to determine what should be done to achieve certain goals or objectives, such as maximizing efficiency, promoting equity, or achieving economic growth. It involves making subjective judgments about the desirability of different outcomes and weighing the costs and benefits of various alternatives.

Key Points
- Normative economic analysis deals with how things should be or how economic outcomes ought to be.
- It involves making value judgments and recommendations based on subjective opinions and beliefs about what is desirable or optimal.
- Normative analysis is concerned with evaluating economic policies, decisions, and outcomes in terms of their desirability or social welfare.
- It aims to determine what should be done to achieve certain goals or objectives, such as maximizing efficiency, promoting equity, or achieving economic growth.
- Normative analysis involves making subjective judgments about the desirability of different outcomes and weighing the costs and benefits of various alternatives.

In conclusion, the correct answer is option 'B' - normative economic analysis deals with economic variables as they should be. It involves making value judgments and recommendations based on subjective opinions and beliefs about what is desirable or optimal.