Question

‘Around 22% of India’s population is below the poverty line.’ It is an example of Normative Economics. (True/False)

Answer 1

This statement is false.

Explanation:

The statement is an example of Positive Economics, not Normative Economics. Positive Economics deals with facts and economic situations as they actually exist. The given statement is factual and can be verified using actual data. Therefore, it is a positive economic statement.