Question

Identify the following statements as Positive and 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

Answer:

MGNREGA is to be implemented mainly by gram panchayats (GPs). The involvement of contractors is banned. Apart from providing economic security and creating rural assets, NREGA can help in protecting the environment, empowering rural women, reducing rural-urban migration and fostering social equity, among others."