Match List I with List II
| List I | List II | ||
| A. | Inflation | I. | Normative economics |
| B. | Revenue of a firm | II. | Macro economics |
| C. | Smoking is injurious to health | III. | Micro economics |
| D. | Smoking should be reduced | IV. | Positive economics |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : A-II, B-III, C-IV, D-I
| List I | List II | ||
| A. | Inflation | II.Macro economics | |
| B. | Revenue of a firm | III.Micro economics | |
| C. | Smoking is injurious to health | IV.Positive economics (A factual statement). | |
| D. | Smoking should be reduced | I.Normative economics | |
A. Inflation: This is a macroeconomic concept that deals with the overall price level and its changes in an economy. (II - Macroeconomics)
B. Revenue of a firm: This is a microeconomic concept that focuses on the behavior and decision-making of individual firms within an economy. (III - Microeconomics)
C. Smoking is injurious to health: This is a positive statement about the health effects of smoking. Positive statements describe "what is" without value judgments. (IV - Positive Economics)
D. Smoking should be reduced: This is a normative statement suggesting a course of action based on values or beliefs. Normative statements describe "what ought to be." (I - Normative Economics)