Question

In the following Question, read the following statement: Assertion (A) and Reason (R). Choose the correct alternative:

Assertion (A): Positive Economics avoids economic value judgements.

Reason (R): Positive Statements can be verified as true or false by comparing with actual data.

Options

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is True but Reason (R) is False.

• Assertion (A) is False but Reason (R) is True.

Answer 1

Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Positive Economics deals with economic facts and cause-and-effect relationships without making value judgements. It explains economic situations as they actually exist. Its statements can be verified as true or false using actual facts and data.