“Mahatma Gandhi National Rural Employment Guarantee Act, will one day bring an end to the problem of unemployment in the country”.
The following statement can be put under which of the following options?
Answer & explanation
Correct answer: option 1
The Correct Answer is option 1 :Normative economics
The statement "Mahatma Gandhi National Rural Employment Guarantee Act will one day bring an end to the problem of unemployment in the country" expresses a value judgment or a subjective opinion about the effectiveness of a specific policy in solving a social problem. It reflects an ideal or a desired outcome rather than an objective analysis of economic phenomena.
Therefore, the statement falls under the category of normative economics, which involves making value judgments and recommendations about what ought to be. Normative economics deals with questions of what policies or actions should be pursued to achieve certain goals or outcomes.