Question

2. Identify the following statements as Positive or Normative economics. Give
reason.
a. MGNREGA uses taxpayers' money, and therefore, it must be stopped.
b. Resources are best allocated by allowing the market mechanism to work freely
i.e. without any government intervention.
c. If the population in India continues to grow at the existing rate, the
percentage of the population below the poverty line will exceed 22% in the year 2020.​

Answer 1

Identify the following statements as Positive or Normative economics. Give  reason.

Explanation:

1. MGNREGA uses taxpayers' money and therefore it must be stopped is a normative economics because in this statement suggestions are given and normative economics is all about giving suggestions.
2. Resources are best allocated by allowing the market mechanism to work freely i.e. without any government intervention is a positive economics because in this statement the truth is said and positive economics is all about true facts and Clearly measurable.
3. If the population in India continues to grow at the existing rate the percentage of the population below the poverty line will exceed 22% in the year 2020 is a normative economics because in this statement suggestion is given.