Question : Assertion: Normative economics is concerned with making value judgments about what should be done in the economy.
Reason: Normative economics is based on objective analysis and empirical evidence.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: The assertion is true, but the reason is false.
Solution : (c) The assertion is true, but the reason is false.
The assertion is true. Normative economics involves subjective judgments and is focused on providing policy recommendations based on personal values, ethical considerations, and societal goals.
However, the reason provided, is false. Unlike positive economics, which aims to be objective and value-free, normative economics is inherently subjective and does not rely solely on objective analysis or empirical evidence. Normative judgments are based on personal opinions, preferences, and value systems, which can vary among individuals and societies.
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