Normative economics

Normative economics is a way to think about how things should be, based on our values and goals, rather than just how they currently are. It's like a grown-up version of playing "let's pretend" or "make-believe".

So, let's say you and your friends are playing a game of soccer, and everyone has their own opinions about how the game should be played. One person might say, "We should play with smaller goals, so it's easier to score." Another person might say, "No way! We should leave the goals as they are, because it makes the game more challenging."

These are both examples of normative economics! Each person is suggesting a way to make the game better, or to achieve a specific goal. This is different from positive economics, which simply describes how things are or how they work, without making value judgments about them.

In the real world, normative economics is often used in policy debates or political discussions. For example, politicians might debate whether the government should raise the minimum wage, or whether they should cut taxes for businesses. These are both examples of normative economics – each side is arguing for a different course of action based on their goals and values.

The important thing to remember is that there is no one "right" answer in normative economics. Different people will have different opinions about what should be done, and that's okay! It's all about thinking creatively and coming up with solutions that help us achieve our goals and make the world a better place.