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Chapter 1 Unit II questions

For Chapter 1 Unit II questions Click Nature & Scope of Business Economics
QUESTION
Q11) Ram: My corn harvest this year is poor.
Krishan:Don’t worry. Price increases will compensate for the fall in quantity supplied.
Vinod: Climate affects crop yields. Some years are bad, others are good.
Madhu: The Government ought to guarantee that our income will not fall.
In this conversation, the normative statement is made by

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Correct

Solution:
The normative statement is made by Madhu.
A normative statement is a statement that expresses an opinion or value judgment about what ought to be done.
Madhu’s statement that “the Government ought to guarantee that our income will not fall” expresses an opinion about what the government should do, which is a normative statement. The other statements are positive statements that describe the situation as it is or make predictions about what will happen in the future.
Correct option is (d)