Question

Which of the following is a statement of normative nature in economies? Economics is a study of choices/ alternatives or government should be concerned with how to reduce unemployment or

Answer 1

Answer:

• Normative economics deals with what ought to be or how the economic problems should be solved. It discusses what the desirable things are and how they should be realized. Thus it is suggestive in nature.
• An economic model is a simplified version of reality that allows us to observe, understand, and make predictions about economic behavior. The purpose of a model is to take a complex, real-world situation and pare it down to the essentials. ... Sometimes economists use the term theory instead of model.