Match each statement with its kind.

Match each statement with its kind. — CUET Economics practice

Question 85

MediumOriginal question

Match each statement with its kind.

List I	List II
A. India's GDP grew last year.	I. Feature of a centrally planned economy
B. Rich people should pay higher taxes.	II. Feature of a market economy
C. Prices guide production in a market economy.	III. Normative statement
D. A central authority makes all production decisions.	IV. Positive statement

A-II, B-IV, C-III, D-ICorrect answerYour answerA-IV, B-II, C-I, D-IIICorrect answerYour answerA-IV, B-III, C-II, D-ICorrect answerYour answerA-III, B-I, C-IV, D-IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

GDP growth can be checked: positive. 'Should' is a judgement: normative.
Prices guiding production is the market economy; a central authority deciding is central planning.

Concept: Statements and systems
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsEconomic systems; positive and normative

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Question 85

Explanation