‘‘Problem of resource allocation would not arise if resources do not have alternative uses.’’ Defend or refute the statement with valid arguments.

OR

Discuss briefly the meaning of positive economics and normative economics, with suitable examples.

● I support this statement.

● The problem of resource allocation arises due to the scarcity of resources.

● These resources are limited and can be put to alternative uses. If a resource can be put to only one particular use, the problem of allocation would not have arisen.

OR

● Positive economics is the branch of economics that is based on data and facts and can be checked using scientific methods.

● It is the study of “What is?.

● For example, ‘India jumped 23 points in the World Bank’s ease of doing business index to 77th place, highest in 2 years.’

● Normative economics is the branch of economics that is based on values and opinions.

● It is not possible to test these statements.

● It is the study of “What ought to be?’’.

● It is suggestive in nature.

● For example, ‘Government should further liberalize the business rules.’