![]() ![]() The price of milk should be $6 a gallon to give dairy farmers a higher living standard and to save the family farm. In this discipline, sometimes called the "art of economics," positive economics is utilized as a practical tool for achieving normative objectives, which often involve policy changes or states of affairs.Īn example of a normative economic statement is as follows: Positive and normative economics are often synthesized in the style of practical idealism. This leaves open the possibility of fruitful scientific discussion of value judgments. He finds it interesting to note that "no judgments are demonstrably basic" while some value judgments may be shown to be nonbasic. On the other hand, welfare economist Amartya Sen distinguishes basic (normative) judgements, which do not depend on such knowledge, from nonbasic judgments, which do. ![]() Many normative (value) judgments, however, are held conditionally, to be given up if facts or knowledge of facts changes, so that a change of values may be purely scientific. Įconomists commonly prefer to distinguish normative economics ("what ought to be" in economic matters) from positive economics ("what is"). It focuses on the idea of fairness and what the outcome of the economy or goals of public policy ought to be. Normative economics (as opposed to positive economics) is the part of economics that deals with normative statements. ![]()
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