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.
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: Statement 1 is true, and statement 2 is false.
Solution : The correct answer is (a) Statement 1 is true, and statement 2 is false.
Statement 1 is true. Positive economics aims to analyze and explain economic phenomena based on facts and empirical data, without incorporating value judgments or personal opinions.
Statement 2 is false. Normative economics, on the other hand, involves making value judgments and providing recommendations or prescriptions for what economic policies or outcomes should be implemented or desired. It goes beyond explaining economic phenomena as they occur and involves subjective opinions and evaluations.
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: 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.
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: Job analysis involves collecting information about a job's duties.
Statement 2: Job analysis only considers job titles.
Option 1: Both statements are true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 2 is true, but statement 1 is false.
Option 4: Both statements are false.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile