[Solved] Which of the following pairs correctly matches the statement with its economic type? — Ans: "The inflation rate is 6%" - Positive; "The government should reduce taxes" -... | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Which of the following pairs correctly matches the statement with its economic type?

A"The GDP growth rate was 7% last year" - Normative; "Inflation should be controlled" - Positive

B"The government must increase exports" - Positive; "The unemployment rate is 5%" - Normative

C"Interest rates should be lowered" - Positive; "Fiscal deficit was 4%" - Normative

D"The inflation rate is 6%" - Positive; "The government should reduce taxes" - Normative

Step-by-Step Solution

Step 1: Recall definitions of positive and normative economics
Positive economics involves factual, testable statements; normative economics involves opinions or prescriptions.
Step 2: Analyze each pair
Only the pair with inflation rate as positive (fact) and tax reduction as normative (opinion) is correct. Other pairs incorrectly swap types.
Final Answer:
"The inflation rate is 6%" - Positive; "The government should reduce taxes" - Normative → Option D
Quick Check:
Positive = facts; Normative = opinions ✅

Quick Trick: Match factual data with positive and recommendations with normative.

Common Mistakes:

MISTAKES

Master "Sectors of Indian Economy" in Economic Awareness

Start learning the concept with an interactive lesson.

More Economic Awareness Quizzes

Which of the following pairs correctly matches the statement with its economic type?