Question:

What are normative criteria?

by  |  earlier

0 LIKES UnLike

i was just reading the book Armchair Economist, and i can't understand the meaning of normative criteria. any idea waht it means?

 Tags:

   Report

2 ANSWERS


  1. Normative economics basically means opinion economics.  Comments like "should" or "could" instead of what is.

    P.S.

    We all make normative economic statements, but most economist like to stay away from it as much as possible.


  2. Normative means saying what the economy should be.

    (Positive means describing what it really is).

    The criteria for normative work are:

    equality  - low income disparity.

    efficiency - you cannot benefit one person w/o hurting somebody else.

    A thing that comes up in taxation is "progressive" principle - that you tax rich more, since they can pay more.

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Unanswered Questions