Question

What do you understand by normative economics analysis?

Answer 1

Answer:

Normative economics focuses on the value of economic fairness, or what the economy "should be" or "ought to be." While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments. Most public policy is based on a combination of both positive and normative economics.

Explanation:

Answer 2

Normative Economics :-

It is a economics which deals with the opinions of economists and offer what ought to be as a solution of every economic problem . These opinions are just value judgements .

Characteristics of Normative Economics :-

1. It's statements can lead to debates , as all opinions are different .

2. These statements are not verifiable for truth .

3. These statements reflects only what should be .

4. These are only value judgements .

Example :-

Someone says that MNREGA is very beneficial scheme it's working days should be increased .

Or Someone says old pension's amount should be increased . etc