Definition of Normative economics:
Study of economics that attempts to determine desirability (or undesirability) of different economic conditions, programs, or situations by asking, what should or ought to be. In contrast, positive economics is concerned with what is..
Unlike positive economics, which relies on objective data analysis, normative economics heavily concerns itself with value judgments and statements of "what ought to be" rather than facts based on cause-and-effect statements. It expresses ideological judgments about what may result in economic activity if public policy changes are made. Normative economic statements can't be verified or tested.
Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios.
How to use Normative economics in a sentence?
- While positive economics describe economic programs, situations, and conditions as they exist, normative economics aims to prescribe solutions.
- Normative economics cannot be verified or tested.
- You need to know how to correctly read all of the normative economics and make your plan according to what they suggest.
- I was studying normative economics and would end up getting a degree when I was finished because I was studying hard.
- Normative economics aims to determine what should happen or what ought to be.
- The normative economics discussion began to cross the line into philosophy so we decided to interrupt the meeting to get back on topic.
- Normative economics expresses ideological judgments about what may result in economic activity if public policy changes are made.
- Behavioral economics tends to be a normative project.
Meaning of Normative economics & Normative economics Definition