What do you understand by normative economic analysis?

Economics as a normative science means "what ought to be".

Normative economic analysis is about what should be the ideal position in respect of a particular thin.


For example if we say that the daily wage rate should be Rs 100 it will be a normative economic statement in the same manner if we describe the present employment status of the country it will be a positive economic statement where as if we describe that what should be the employment status it will be normative economic statement


Therefore normative economic analysis deals with things as they ought to be and it passes judgement regarding correctness of a phenomena or otherwise




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