Question : Normative economics focuses on:
Option 1: Describing economic theories and models
Option 2: Evaluating the impact of economic policies
Option 3: Predicting future economic trends
Option 4: Analyzing historical economic events
Correct Answer: Evaluating the impact of economic policies
Solution : The correct answer is (b) Evaluating the impact of economic policies.
Normative economics is concerned with making value judgments and evaluating the desirability or appropriateness of different economic policies, systems, or 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.
Related Questions
Trending Articles/News
