Which of the following statement is a part of normative economics?

Statement 1- MGNREGA should not be pursued unless it ensures asset-creation in the country.

Statement 2- 22% of population of India is absolutely poor.

Only statement 1 

The correct answer is Option 1: Only statement 1

Normative economics involves making value judgments and recommendations about what ought to be. Positive economics, on the other hand, describes what is and analyzes economic phenomena based on facts and data.

Statement 1: "MGNREGA should not be pursued unless it ensures asset-creation in the country." This statement expresses a normative opinion about the policy of MGNREGA, suggesting that it should only be pursued if it leads to asset creation. It reflects a value judgment about the policy's effectiveness and its alignment with broader economic goals.

Statement 2- 22% of population of India is absolutely poor. This statement is a part of positive economics.