Question : Which of the following is an example of positive economics?
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.
Correct Answer: Increasing the minimum wage will reduce poverty rates.
Solution : The correct answer is (a) Increasing the minimum wage will reduce poverty rates
Positive economics involves analyzing economic data and facts to provide objective analysis and understanding of how the economy functions. The statement about increasing the minimum wage and its potential impact on poverty rates is based on empirical evidence and economic analysis, which falls within the realm of positive economics.
