Business, Legal & Accounting Glossary
Normative economics is a study of economics that integrate normative or value judgments to determine desirability (or undesirability) of dissimilar economic programs and conditions and formulation of policy actions in order to achieve a set goal. Normative economics is concerned with the desirability of particular economic aspects of a specific country. The study expresses support for specific economic policies.
Normative economics delves into theoretical scenarios and value judgments. This subject studies ‘what ought to be’ than actual scenario present. Normative economics is the opposite of positive economics.
Endogenous growth theory is a type of economics founded on objective analysis. It is distinct from normative economics that deals with value judgments. A decisive number of present-day economists tend to study positive economics and observe current developments to make statements about the future economy. Many economists combine both positive and normative economics in their statements.
Section of economics that considers aggregate economic behaviour. Macroeconomics deal with issues like the national economy, gross domestic product (GDP), price levels, inflation and unemployment. It is concerned with trends and movements in a country’s economy.
Section of economics that is concerned with analyzing the market behaviour of individual companies and consumers. This subject makes an attempt to interpret the decision-making procedures of individuals and companies. Microeconomics touches on the interaction between individual sellers and buyers and also factors that influence the choice of two. Microeconomics principally focuses on the dynamics of supply and demand and finding of price and output in particular markets.
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This glossary post was last updated: 29th March, 2020 | 0 Views.