Question : Statement 1: Positive economics deals with objective analysis and focuses on explaining economic phenomena as they are.
Statement 2: Normative economics involves subjective judgments and aims to prescribe what economic policies should be implemented.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Correct Answer: Both statements 1 and 2 are true.
Solution : The correct answer is (c) Both statements 1 and 2 are true.
Statement 1 is true: Positive economics deals with objective analysis and aims to explain economic phenomena as they are, without making value judgments or prescribing what should be.
Statement 2 is also true: Normative economics involves subjective judgments and seeks to prescribe what economic policies should be implemented based on value judgments about what is desirable or optimal.
Therefore, both statements are true and accurately describe the distinction between positive and normative economics.
Question : Statement 1: Positive economics aims to determine how changes in the price of a good affect its quantity demanded.
Statement 2: Normative economics focuses on analyzing the impact of government policies on consumer behavior.
Question : Normative economics deals with:
Question : Statement 1: The term entrepreneur was introduced by French economist Richard Cantillon Statement 2: The term entrepreneur was first introduced in economics by the early 19th century.
Question : "Economics is what it ought to be" - This statement refers to
Question : Positive economics involves:
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