Normative economics
What Normative economics means in Economics A-Level, as defined for AQA.
Definitions of Normative economics
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Reference: AQA
The area of economics in which value judgements are central and act as the starting point for government macroeconomic and microeconomic interventions.
The process of classifying products as merit or demerit goods inherently relies on this, rather than on empirical data alone.
Topics that use Normative economics
- Economic methodology (AQA A-Level)
- Merit and demerit goods (AQA A-Level)
Related terms
- Value judgements
- Ceteris paribus
- Demerit goods
- Economic modelling
- Externalities
- Government intervention
- Imperfect information
- Information failure
Using Normative economics in the exam
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