CUET Preparation Today
Which of the following is an example of "Normative economics"? |
Increase in the inflow of foreign capital has led to increase in GDP More than 20% of the population is below poverty line Equal income distribution can solve the problem of poverty in India Government used CRR to check on deflation |
Equal income distribution can solve the problem of poverty in India |
The correct answer is Option 3: Equal income distribution can solve the problem of poverty in India Normative economics deals with the "Opinions" of various economists on the economic issues prevailing in the country. Different economists put forwards different solutions of the problems. Whereas, positive economics deals with "Facts and figures". The statement about equal income distribution solving the problem of poverty is a normative claim, as it reflects an opinion or recommendation about how economic conditions should be improved. |
