What do empirical analysis and normative analysis mean in microeconomics? How to distinguish?
The so-called "empirical analysis" refers to trying to analyze the behavior and operation of the economic system without making good or bad value judgments. It answers the question of "what is the economic object"; And "normative analysis" is to examine the consequences of economic behavior and put forward whether they are good or bad and whether these results can be better judged. Therefore, the normative analysis includes the judgment and stipulation of the preferred action plan, and answers the question of "what should it be". Therefore, from its concept, we can see that the key to distinguish the two is to see whether the value judgment has been made. For example, the proposition that "market economy is better than planned economy" is a "normative analysis" because it clearly makes the value orientation and judgment, while the proposition that "there is a law of diminishing marginal productivity" belongs to "empirical analysis", which explains what is the law of marginal productivity. Try to find out for yourself, the difference between the two is not difficult to tell!