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Question
Why should welfare economics be regarded as normative economics?
Short Answer
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Solution
Normative economics addresses the topic of what should be, whereas positive economics addresses the question of what is. The "normative" and "ethical" facets of any economic policy are unimportant to positive economics. The ethical implications of any policy, however, are a major focus of normative economics. Welfare economics is therefore thought of as normative economics.
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Chapter 34: National Income and Economic Welfare - TEST QUESTIONS [Page 34.16]
