Economic Awareness - Sectors of Indian Economy
Which of the following statements is TRUE regarding the relationship between positive and normative economics?
Which of the following statements is TRUE regarding the relationship between positive and normative economics?
hard Q10 of 15
Step-by-Step Solution
Step 1: Understand the relationship between positive and normative economics
Positive economics describes objective facts and data; normative economics uses these facts to make value-based policy recommendations.Step 2: Evaluate each option
Positive economics provides the facts, while normative economics uses those facts to make policy recommendations. correctly states the relationship. Normative economics is a subset of positive economics focused on data analysis. incorrectly states normative as subset of positive. Positive economics involves value judgments, whereas normative economics is purely objective. reverses the characteristics. Both positive and normative economics deal only with factual data. incorrectly claims both deal only with facts.Final Answer:
Positive economics provides the facts, while normative economics uses those facts to make policy recommendations. → Option AQuick Check:
Positive = facts; Normative = policy recommendations ✅
Quick Trick: Remember normative economics builds on positive facts for policy.
Common Mistakes:
MISTAKES- Confusing the scope and relationship of positive and normative economics.
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