Question

In the above conversation whose statements show normative side of economics.

• A. Shyam
• B. Raghu
• C. Bhola
• D. Both (b) and (c)

Answer 1

The correct option is D Both (b) and (c)

Normative economics deals with what ought to be or how the economic problems should be solved. It discusses what the desirable things are and how they should be realized. Thus it is suggestive in nature as it prescribes solutions to problems.

Thus, we see that the statements given by Raghu and Bhola are both normative statements.