Normative Economics (AS/A LEVELS/IB/IAL)

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes 

Normative Economics

Normative economics is concerned with value-judgements and opinions. Normative statements are subjective and often use sentences which include the following words, should, fair, unfair, better or worse.

For example:

• Corporation tax should be lower for businesses outside of London
• The government should reduce tax on cigarettes
• The governments tax rate on alcohol is unfair

Quick Fire Quiz – Knowledge Check

1. Define ‘Normative Economics’ (2 marks)
2. Identify two examples of a Normative Economic Statement (2 marks)

Next Revision Topics

• Positive Economics
• Economics as a Social Science
• Factors of Production
• Scarcity
• Rational Decision Making
• Alternative views of Consumer Behaviour

A Level Economics Past Papers

• AQA
• Edexcel
• OCR
• WJEC