Question

1. Positive economics seeks to:

a) objectively explain how societies value different economic outcomes.

b) determine the most appropriate economic goals for society.

c) objectively explain how the economy functions.

d) determine what government economic policies are best.

2. Even though 80,000 individuals in the United States wait for kidney transplants and, for a price, there are many individuals who would be willing to supply a kidney (a healthy person can donate one kidney without any problems), it remains illegal to buy and sell organs in the United States. A market for kidneys does not exist because of:

a) market forces.

b) social forces.

c) economic forces.

d) political forces.

Answer 1

Solution-

1. Positive economics seeks to: objectively explain how the economy functions.

The correct option is C. objectively explain how the economy functions.

Reason-

Positive economics (as opposed to normative economics) is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories.

2. Even though 80,000 individuals in the United States wait for kidney transplants and, for a price, there are many individuals who would be willing to supply a kidney (a healthy person can donate one kidney without any problems), it remains illegal to buy and sell organs in the United States. A market for kidneys does not exist because of: political forces.

The correct option is D. political forces.