[Solved] Consider the following statements: 1. The inflation rate should be kept below 4% to ensure economic stability. 2.... Which of these statements are normative economics? | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Consider the following statements: 1. The inflation rate should be kept below 4% to ensure economic stability. 2. The inflation rate in India was 6% last year. Which of these statements are normative economics?

AOnly 1

BOnly 2

CBoth 1 and 2

DNeither 1 nor 2

Step-by-Step Solution

Step 1: Understand the difference between positive and normative statements
Positive statements are factual and testable; normative statements express opinions or what ought to be.
Step 2: Analyze each statement
Statement 1 expresses a value judgment about what inflation should be (normative). Statement 2 states a factual inflation rate (positive).
Final Answer:
Only 1 → Option A
Quick Check:
Normative economics = statement 1 only ✅

Quick Trick: Look for 'should' to spot normative statements.

Common Mistakes:

MISTAKES

Treating factual data as normative due to context.

Master "Sectors of Indian Economy" in Economic Awareness

Start learning the concept with an interactive lesson.

Learn

More Economic Awareness Quizzes

Which of these statements are normative economics?

Step 1: Understand the difference between positive and normative statements

Step 2: Analyze each statement

Final Answer:

Quick Check:

Want More Practice?