Question

Q14. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
alternatives given below: 1
Assertion (A): The positive economics statements can be verified with actual data.
Reason (R): Positive economic statements depict facts.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Answer 1

Answer:

TAKEAWAYS

Positive economics is an objective stream of economics that relies on facts or what is happening.

Conclusions drawn from positive economics analyses can be tested and backed up by data.

Positive economic theory does not provide advice or instruction.

Statements based on normative economics include value judgments or what should be in the future.

Positive economics and normative economics can work hand in hand when developing policy