Question : A statement like "The government should provide universal healthcare" is an example of:
Option 1: Positive economics
Option 2: Normative economics
Option 3: Both positive and normative economics
Option 4: Neither positive nor normative economics
Correct Answer: Normative economics
Solution : The correct answer is (b) Normative economics.
A statement like "The government should provide universal healthcare" is an example of normative economics because it involves a value judgment and a prescription for how the government should act in the economic sphere. Normative economics deals with making value judgments, evaluating economic policies, and providing recommendations or judgments on what should or ought to be done in the economic realm. It involves subjective values and goals, and it is concerned with the desirability or appropriateness of different economic policies or outcomes.
