[Solved] Identify which of the following statements are positive economics statements: 1. The Reserve Bank of India reduced the repo rate by 25 basis points in 2025. 2.... | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Identify which of the following statements are positive economics statements: 1. The Reserve Bank of India reduced the repo rate by 25 basis points in 2025. 2. The government should increase subsidies to the agricultural sector. 3. Inflation must be kept under 5% to protect consumers. Choose the correct option.

AOnly 1 and 3

BOnly 2 and 3

COnly 1

DAll 1, 2 and 3

Step-by-Step Solution

Step 1: Differentiate positive and normative statements
Positive economics are factual and verifiable; normative economics express opinions or what ought to be.
Step 2: Analyze each statement
Statement 1 is a factual event about RBI's repo rate cut (positive). Statements 2 and 3 express what should or must be done, which are normative.
Final Answer:
Only 1 → Option C
Quick Check:
Positive economics = statement 1 only ✅

Quick Trick: Look for factual events vs value judgments.

Common Mistakes:

MISTAKES

Confusing policy recommendations as facts.

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Step 1: Differentiate positive and normative statements

Step 2: Analyze each statement

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