Wednesday, February 3, 2010
Concept of normative economics
According to Davide begg and other -"normative economics offers prescription or recommendation
based on personal value judgements".
Normative economics is based on subjective value judgements.normative economics is not based on the search for any objective truth.Normative economics makes prescription about what should be done.There is no reason why economics should agree about normative judgements.We can make the distinction between positive economics.The second part of the statement in normative economics.
positive economics,as opined by Stonier and
Hague,attempts to describe and analyse the existing situation,rather than suggesting how to change it.A great deal of economics of this kind.Hoverer,economists often make normative statements.They suggest how the economy should actualy operate.They suggest what the government economic policy ought to be,how the government should act to increase level of employment as so on.Hence, what 'ought to be'is a normative statement wheres 'what is'is apositive statement.
The controversy as tom whether economics is a posetive science or normative science seems to have subsided.It is beacouse economics is regard as both normative science is the blending of posetive science and positive science.
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