[Solved] Which of the following best describes the role of positive economics in policy making? — Ans: It provides objective analysis of economic data to inform decisions. | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Which of the following best describes the role of positive economics in policy making?

AIt provides objective analysis of economic data to inform decisions.

BIt prescribes what policies should be implemented based on values.

CIt focuses on ethical considerations in economic policies.

DIt advocates for specific economic reforms.

Step-by-Step Solution

Step 1: Understand the role of positive economics
Positive economics provides objective, fact-based analysis and explanations of economic phenomena without making value judgments.
Step 2: Evaluate options
Only the option stating objective analysis to inform decisions fits positive economics. Prescribing policies or ethical considerations belong to normative economics.
Final Answer:
It provides objective analysis of economic data to inform decisions. → Option A
Quick Check:
Positive economics = objective analysis for policy ✅

Quick Trick: Remember positive economics is descriptive, not prescriptive.

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