Normative economics is the branch of economics that is concerned with welfare propositions. It deals with subjective value judgments and opinions about what ought to be, rather than what is. Normative economics focuses on the study of how the economy should be structured and how resources should be allocated in order to achieve desirable outcomes.

Explanation:

Normative economics involves making value judgments about economic policies and actions. It is based on subjective opinions and beliefs about what is good or bad, right or wrong, fair or unfair. In normative economics, economists analyze the economic impact of different policies and make recommendations on what should be done to improve societal welfare.

Normative economics addresses questions such as:

1. What policies should be implemented to reduce income inequality?
2. How should the government intervene in the economy to promote economic growth?
3. What is the optimal level of taxation to achieve both efficiency and equity?
4. Should the minimum wage be increased to improve the standard of living for low-income workers?

Normative economics is often contrasted with positive economics, which focuses on objective analysis and the study of what is. Positive economics seeks to explain and predict economic phenomena based on facts and data, without making value judgments.

Normative economics is essential for policymakers and governments as it helps them make informed decisions about economic policies. By evaluating different options and their potential impacts on welfare, normative economics provides a framework for assessing the trade-offs and consequences of different policy choices.

In conclusion, normative economics is the branch of economics concerned with welfare propositions and value judgments. It plays a crucial role in shaping economic policies and determining how resources should be allocated in order to achieve desirable outcomes.

What is the actual answer??