Question : Normative economics is primarily concerned with:
Option 1: Analyzing economic data and trends
Option 2: Making value-free judgments about economic policies
Option 3: Evaluating economic theories and models
Option 4: Prescribing how the economy should function
Correct Answer: Prescribing how the economy should function
Solution : The correct answer is (d) Prescribing how the economy should function.
Normative economics is primarily concerned with prescribing how the economy should function. It involves making value judgments, providing recommendations, and evaluating economic policies based on subjective values and goals. Normative economics aims to offer guidance on what should or ought to be done in the economic sphere, taking into account moral, ethical, or societal considerations.
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