Normative conclusions

Question

Quizplus · Accepted Answer

Normative conclusions involve value judgments, which go beyond what can be derived directly from positive analysis. While positive analysis is focused on describing how things are or how they work, normative analysis considers how they should be or how they ought to work. Therefore, normative conclusions are not based on ignorance of positive analysis, but rather build upon it in order to reach prescriptive recommendations. The economist's role as scientist is limited to conducting positive analysis, while normative analysis falls under a different aspect of economics, which involves ethical and philosophical considerations.

Normative Conclusions