Question : Normative economics deals with:
Option 1: Economic data analysis
Option 2: Objective and value-free analysis
Option 3: Economic policies and ethical judgments
Option 4: Economic theories and models
Correct Answer: Economic policies and ethical judgments
Solution : The correct answer is (c) Economic policies and ethical judgments.
Normative economics deals with the formulation and evaluation of economic policies, as well as making ethical judgments about economic outcomes. It involves analyzing economic issues from a normative or prescriptive perspective, considering subjective values and goals. Normative economics aims to provide recommendations or judgments on what should or ought to be done in the economic sphere.
