Question : Which of the following is an example of positive economics?
Option 1: The government should regulate monopolistic behavior to protect consumers.
Option 2: Supply and demand determine market prices.
Option 3: Wealth should be redistributed to achieve social equality.
Option 4: Economic policies should prioritize environmental sustainability.
Correct Answer: Supply and demand determine market prices.
Solution : The correct answer is (b) Supply and demand determine market prices.
Supply and demand determine market prices is an example of positive economics because it describes an economic relationship based on empirical observation and analysis. The statement highlights the role of supply and demand in determining market prices, which is a fundamental concept in economics that can be studied and understood through observation and data analysis.
Option 1: Increasing the minimum wage will reduce poverty rates.
Option 2: The government should prioritize environmental sustainability over economic growth.
Option 3: Free trade improves overall economic welfare.
Option 4: The distribution of wealth in society is unjust.
Question : Which of the following statements is an example of positive economics?
Option 1: The government should regulate the banking sector to prevent financial crises.
Option 2: Tax cuts for corporations will stimulate economic growth.
Option 3: Wealth redistribution is necessary for a just society.
Option 4: Economic efficiency should be prioritized over equity.
Question : India's environmental policies often emphasize:
Option 1: The deregulation of environmental protections
Option 2: The integration of environmental sustainability with development
Option 3: The prioritization of industrial growth over ecological balance
Option 4: The rejection of international environmental conventions
Question : Positive economics involves:
Option 1: Assessing the impact of economic policies on societal well-being
Option 2: Conducting experiments to test economic theories
Option 3: Evaluating the ethical implications of economic decisions
Option 4: Analyzing economic data to understand cause and effect relationships
Question : Normative economics deals with:
Option 1: Economic data analysis
Option 2: Objective and value-free analysis
Option 3: Economic policies and ethical judgments
Option 4: Economic theories and models
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