Q5 of 36 Page 1

Identify and discuss the nature of the following newspaper reports in terms of positive or normative economic analysis :

(i) “India jumped 23 points in the World Bank’s ease of doing business index to 77th place, highest in 2 years.” – The Economic Times


(ii) “Government should further liberalize the business rules.” – The Economic Times


The statements are analyzed below:

i) “India jumped 23 points in the World Bank’s ease of doing business index to 77th place, highest in 2 years.” This statement represents positive economic analysis. It is based on data and facts and can be checked using scientific methods. It is the study of “What is?”


ii) “Government should further liberalize the business rules.” This statement represents normative economic analysis. It is based on values and opinions. It is not possible to test these statements.


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