classify the following statements into positive economics or normative economy with suitable reason
Answers
Answer:
Explanation:
Identify the given statement are normative or positive.
1. India has a large number of poor people .
→ Positive economics.
Because we can calculate the number of poor people by data.
2. The government should spend more on education .
→ Normative economics.
This is obviously a opinion .
3. Poor people are suffering due to price rise of essentials.
.→Positive economics.
We can check whether poor people are suffering or not by the data .
4. Bank has increased its interest rate.
→ Positive economics.
We areprovided with the data that bank has increased or decreased its interest rate and we can compare it with the earlier rate also .
5. People should be encouraged to save in post office and commercial banks.
→ Normative economics .
This is obviously an opinion.
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Positive economics :-
It deals with the economic issue related to past present and future and can be studied by using facts and figures .
Normative economics :-
It is the economics of what ought to be riddles with opinion of economists related to economic issue or economic problem