Question

Choose the correct option, with reference to the following two statements:
Statement I: With an increase in prices in the country, fees in private schools increase.
Statement II: Increase in school fees is unjust.

• A. Statement I and Statement II both are statements of Positive economics.
• B. Statement I and Statement II both are statements of Normative economics.
• C. Statement I is a statement of Positive economics and Statement II is a statement of Normative economics.
• D. Statement I is a statement of Normative economics and Statement II is a statement of Positive economics.

Hint:

Positive economics focuses on factual statements that can be tested, while Normative economics involves value judgments and opinions about how things should be.

Answer 1

The Correct Option is C

Statement I is based on an observable fact and thus is classified as Positive economics. Statement II reflects a value judgment about what "ought to be" and is categorized as Normative economics.