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.
