Micro

Introduction

Easy

Which statement is not related to Normative Economics?

It prescribes norms of welfare of the society

It regulates in order to achieve idealised norms

It explains ideal situation and gives policy prescriptions explicitly

It explains actual behavior of economic agents

✅ Correct Option: 4

Normative economics is concerned with what 'ought' to be - it prescribes norms, ideal situations, and policy prescriptions. Explaining the actual (what 'is') behaviour of economic agents is the job of Positive Economics, not Normative Economics. Hence option 4 is NOT related to normative economics.

2025: 22 May Shift 1

The curve gives the maximum amount of corn that can be produced in the economy for any given amount of cotton and vice versa. This curve is called.........

2026: 15 May Shift 1

There is always a cost of having a little more of one good in terms of the amount of the other good that has to be forgone. This cost is known as........................

2025: 28 May Shift 2

The book 'An Enquiry into the Nature and Cause of the Wealth of Nations' was published in which of the following year.

2025: 3 June Shift 2

A set of arrangements where economic agents can freely exchange their endowments or products with each other. Such an economy is defined as?

2025: 22 May Shift 1

......... is an economy in which there is both the private sector and the government.

2025: 30 May Shift 2

Which statement is not true for Adam Smith?

Which statement is not related to Normative Economics?

Solution

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