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Question

Senior citizen deserve hike in pension and better medical care. This is a ______________ statement.

A
subjective
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B
negative
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C
positive
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D
normative
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Solution

The correct option is B normative
  • 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.
  • Senior citizens deserve hike in pension and better medical care is suggesting us a measure to make the situation desirable for senior citizens and thus the statement is normative in nature.

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