Which of the following is a statement of normative nature in economics?
a) Economics is the study of choices/alternatives.

b) The government should be concerned with how to reduce unemployment

c) According to an estimate, in spite of severe shortage, more than 10% of houses in Indian cities are lying vacant.

d) Accommodation of Refugees is posing a big problem for Europe

Question

Which of the following is a statement of normative nature in economics?
a) Economics is the study of choices/alternatives.

b) The government should be concerned with how to reduce unemployment

c) According to an estimate, in spite of severe shortage, more than 10% of houses in Indian cities are lying vacant.

d) Accommodation of Refugees is posing a big problem for Europe

Philoid · Accepted Answer

Explanation

Normative economics is the branch of economics that deals with how the economic problems facing the society should be solved. It is concerned with the economic policies and goals and how to achieve them. It studies what should be or what ought to be. It cannot be tested with respect to logical and empirical evidence.