Normative analysis involves evaluating and prescribing policies or outcomes based on value judgments, focusing on what ought to be rather than what is. It contrasts with positive analysis, which is purely descriptive and objective, and is often used in economics, ethics, and policy-making to guide decisions based on societal values and goals.

Normative Analysis

Normative analysis

evaluating and prescribing policies

value judgments

what ought to be

Positive analysis is an objective approach in economics that focuses on describing and predicting economic phenomena based on empirical data and factual evidence, without incorporating subjective judgments or policy prescriptions. It is distinct from normative analysis, which involves value judgments about what the economy should be like or what policy actions should be recommended.

positive analysis

purely descriptive

objective

Economics is the study of how individuals, businesses, and governments make choices on allocating resources to satisfy their wants and needs, and how these choices interact to shape markets and economies. It encompasses both microeconomic and macroeconomic perspectives, analyzing everything from individual consumer behavior to global economic trends.

economics

Ethics is the branch of philosophy concerned with questions about what is morally right and wrong, good and bad, fair and unfair. It provides a framework for evaluating human actions and decisions, guiding individuals and societies in making choices that align with moral principles.

ethics

Policy-making is the process by which governments and organizations develop rules, regulations, and guidelines to address societal issues and achieve specific goals. It involves a series of steps including problem identification, policy formulation, adoption, implementation, and evaluation, often requiring stakeholder engagement and negotiation to balance competing interests and resources.

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