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Normative Economics

Normative Economics
Normative economics is an approach to economics that anises outcomes of economic behaviour, evaluates them as good or bad. In other words, normative economics is the branch of economics that incorporates value judgements about what the economy should be like or what particular policy actions should be recomended to achieve a desirable goal. Normative economics looks at the desirability of certain aspects of the economy. It undertakes expressions of support for particular economics of support for particular economic policies. Normative statements are subjective based on opinion only often without a basis in fact or theory. They are value laden, emotional statements that focus on "what economics to

Examples:
  • The decision to grant independence for the central bank is unwise and should be reversed.
  • A national minimum wage is totally undesirable as it does not help poor and causes higher unemployment and inflation.
  • The agriculture sector should be developed to alliviate poverty.
  • Protectionism is the only proper way to improve the living standard of workers whose jobs are threntened by cheap imports.

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