Practicing Success
Practicing Success
CUET Preparation Today
Which statement is not related to Normative Economics ? |
It prescribes norms of welfare of the society It regulates in order to achieve idealised norms It explains ideal situation and gives policy prescription explicitly It explains actual behavior of economic agents |
It explains actual behavior of economic agents |
The correct answer is option (4) : It explains actual behavior of economic agents 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. |
