The economic approach in which we try to understand whether given mechanisms are desirable or not is known as ..........

Option 1 -> Deals with value judgments and evaluates whether economic mechanisms are desirable or not.

Option 2 -> Describes economic phenomena as they are, based on facts without making judgments about desirability.

Option 3 -> A utility theory approach where satisfaction is measured numerically, not related to evaluating mechanisms.

Option 4 -> A utility theory approach where preferences are ranked ordinally, not related to evaluating mechanisms.

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Hence, Option 1: Normative Economics -> Normative economics is concerned with value judgments and prescriptive statements about what "ought to be" or what is "desirable." It evaluates economic policies, mechanisms, and outcomes based on ethical, social, or political criteria to determine if they are good or bad, fair or unfair, desirable or undesirable. This is in contrast to positive economics, which only describes and explains economic phenomena without making judgments. -> correct