Answer :

In principle, there are more than just one way to solve the central problems of an economy. The mechanisms are different because of the different types of analysis they use, and can benefit the country in different ways.

Normative economic analysis involves evaluating whether these mechanisms are desirable or not. It basically tries to evaluate the mechanism instead of simply figuring out how it functions. It offers ideologically prescriptive judgments towards economic development, investment projects, statements and scenarios. It does not rely on objective data like positive economics does. Instead, it concerns itself with value judgments and expressing ideological judgments regarding policy changes.

Example – cutting taxes in half to increase disposable income levels.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

Explain the centrEconomics - Board Papers

In the given figuEconomics - Board Papers

Identify and discEconomics - Board Papers

What is a productNCERT - Introductory Microeconomics