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Question

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.


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