To reduce pollution, government should impose heavy penalty on polluting vehicles. 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 D 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.
To reduce pollution, government should impose
heavy penalty on polluting vehicles is suggesting us a measure to
make the situation desirable, that is reducing pollution and thus the statement
is normative in nature.