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The course on normative study frequently requires an exact application of elements of game theory, formal reasoning, abstract mathematics, clear reasoning, and construction formal & logical proofs. Frequently students need help in the area of conducting such social analysis as they need rigorous arithmetical and logical treatments.
Normative economics is a branch of economics that derives its meaning from a standard rule or behavior. Thus, normative economics expresses values or judgments about the outcome of the economy or the goals of public policy. Normative economics primarily emphasizes on what the consequences of the economy or goals of popular public policies should be. Most of the normative decisions are ambivalent or contrary to fact. There remains no range of proving the decision at the time of making it.
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The courses on normative economics involve immersing into topics of social choice theory such as economic analysis of taxation, social welfare functions, the role of cooperative game theory, and new welfare economic principles. The application of elements on this subject requires the construction of formal and logical proofs, for which students often need assistance. Students also require having a theoretical understanding of the social choice theories of several leading economists.
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Positive and normative economics is both important branches of economics. However, there is a major difference between both. Positive economics is descriptive in nature and is supported by facts and information, whereas normative economics is based on opinion, judgment, and value.
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