Question : Normative economics is often based on:
Option 1: Objective analysis and empirical evidence
Option 2: Subjective opinions and personal values
Option 3: Economic theories and models
Option 4: Historical trends and patterns
Correct Answer: Subjective opinions and personal values
Solution : The correct answer is (b) Subjective opinions and personal values.
Normative economics is often based on subjective opinions and personal values. It involves making value judgments, providing recommendations, and evaluating economic policies based on subjective values and goals. Normative economics aims to prescribe what should or ought to be done in the economic sphere, taking into account moral, ethical, or societal considerations.
