Question

Define Normative Economics, with a suitable example?

Answer 1

Normative Economics is that branch of economics which is deals with such issues which are suggestive in nature and are not verifiable. These issues involve value judgement, and are therefore, debatable.

Example : Demonetisation of 500 rupee and 1000 rupee notes in the economy is a final remedy to the problem of black money in India. (This is debatable suggestion)