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Chapter 1 Unit II questions

For Chapter 1 Unit II questions Click Nature & Scope of Business Economics
QUESTION
Q16) Which of the following is a normative economic statement?

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Solution:
The normative statement is a statement that expresses a value judgment about whether a situation is desirable or undesirable. It is an opinion-based statement that cannot be tested or validated.
Out of the given options, (c) The minimum wage should be raised to 200/- per day is a normative economic statement because it expresses an opinion about what should be done.
The other options are positive economic statements because they describe how things are or how they work. For example, (a) Unemployment rate decreases with industrialization describes how things work, while
(b) Economics is a social science that studies human behaviour describes what economics is.
(d) India spends a huge amount of money on national defence describes how things are.
Correct option is (c)