Question : Which of the following is an example of positive economics?
Option 1: The government should invest more in renewable energy sources.
Option 2: Higher taxes on cigarettes will reduce smoking rates.
Option 3: Income inequality is a moral issue that needs to be addressed.
Option 4: Economic growth is essential for societal well-being.
Correct Answer: Higher taxes on cigarettes will reduce smoking rates.
Solution : The correct answer is (b) Higher taxes on cigarettes will reduce smoking rates.
Positive economics is concerned with analyzing economic data and facts to provide objective analysis and understanding of how the economy functions. It aims to describe and explain economic phenomena without making value judgments or prescribing how the economy should function. Option (b) is an example of positive economics because it is based on empirical evidence and economic 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 : 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 : 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 : Which objective of government budget is highlighted here? Government imposes heavy taxation to discourage the consumption of harmful consumption goods like liquor, cigarettes, etc.
Option 1: Reallocation of resources
Option 2: Reducing income inequalities
Option 3: Economic stability
Option 4: Economics growth
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.
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