[Solved] Which of the following statements is normative in nature? — Ans: The government should reduce the fiscal deficit to below 3%. | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Which of the following statements is normative in nature?

AThe government should reduce the fiscal deficit to below 3%.

BThe fiscal deficit of India was 6.5% of GDP in 2023-24.

CThe Consumer Price Index increased by 4% last year.

DThe Reserve Bank of India sets the monetary policy.

Step-by-Step Solution

Step 1: Identify normative statements
Normative statements express opinions or recommendations, often using words like 'should' or 'ought to'.
Step 2: Analyze each option
Only the statement about reducing fiscal deficit to below 3% is prescriptive and normative. Others are factual or descriptive.
Final Answer:
The government should reduce the fiscal deficit to below 3%. → Option A
Quick Check:
Normative economics = prescriptive statement ✅

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

Common Mistakes:

MISTAKES

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