Which statement is not related to Normative Economics ?
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : It explains actual behavior of economic agents
Option 4 is not related to normative economics because explaining the actual behavior of economic agents is a feature of positive economics, which studies “what is” rather than “what ought to be.”
NCERT: Normative economics focuses on value judgements and policy prescriptions, prescribing what ought to be done based on normative principles. It is more concerned with ideal situation and policy recommendations rather than explaining the actual behavior of economic agents, which is typically the realm of positive economics.