Question : Statement 1: Normative economics involves making value judgments about the fairness and desirability of different economic outcomes.
Statement 2: Positive economics is based on objective analysis and focuses on explaining how the economy works.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Correct Answer: Both statements 1 and 2 are true.
Solution : (c) Both statements 1 and 2 are true.
Statement 1 is true: Normative economics involves making value judgments about what economic outcomes should be, based on subjective opinions about fairness and desirability. It deals with questions of what ought to be and involves ethical considerations.
Statement 2 is also true: Positive economics is based on objective analysis and focuses on explaining how the economy works. It seeks to provide an understanding of economic phenomena as they are, without making value judgments. Positive economics relies on data, empirical analysis, and economic theories to explain and predict economic behavior.
Therefore, both statements 1 and 2 are true.
Question : Statement 1: Positive economics deals with objective analysis and focuses on explaining economic phenomena as they are.
Statement 2: Normative economics involves subjective judgments and aims to prescribe what economic policies should be implemented.
Question : Statement 1: Positive economics focuses on empirical analysis and avoids making value judgments.
Statement 2: Normative economics involves providing explanations for economic phenomena as they occur.
Question : Statement 1: Positive economics aims to determine how changes in the price of a good affect its quantity demanded.
Statement 2: Normative economics focuses on analyzing the impact of government policies on consumer behavior.
Question : Statement 1: Microeconomics focuses on the study of individual economic agents and their behavior.
Statement 2: Macroeconomics focuses on the study of the overall performance and behavior of the economy.
Question : Statement 1: The National Skill Development Corporation (NSDC) is a public-private partnership initiative.
Statement 2: NSDC focuses on skill development in the formal sector of the Indian economy.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
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