Question

Choose the correct alternatives : Assertion (A) : Positive Economics avoids economic value judgements. Reason ( R) : Positive statements can be verified as true or false by comparing with actual data.

Answer 1

dand Kirti kise kahate Hain

Answer 2

Positive Economics avoids economic value judgments.

Both the assertion and reason are true.

• Instead of views and value judgments, positive economics relies on empirical evidence. We have information at our disposal to substantiate any of our statements. For illustration, we may utilise past data to figure out how interest rates and consumer behaviour are related. Consumers cease borrowing as rates go up since they will have to pay more in interest.
• There are no value judgments in positive economics since it is based simply on facts and statistics. This enables policymakers to devise the required steps to address any economic situations and steer the economy in the desired direction.
• As a result, positive economics avoids making economic value judgements. A positive economic theory, for example, could explain how money supply expansion influences inflation, but it doesn't say what policy should be pursued. This is in contrast to normative economic statements, which express a viewpoint. "Government expenditure should be raised," for example, is a normative assertion. economic factors that cause the economy to proceed in a specific direction