Question

Which of the following is a correct example of a statement containing both positive and normative economics?

Options

• Government should stop Minimum Support Price to the farmers.

• India should spend more money on defence

• Indian economy is a developing economy, the Government should make it develop through correct planning.

• Increase in real per capita income increases the standard of living of people

Answer 1

Indian economy is a developing economy, the Government should make it develop through correct planning.

Explanation:

The third statement is positive in the first half, providing facts, and normative in the second part, based on value judgment.