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Question
What is a market economy?
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Solution
Market economy is a form of economy where the capitalist or the private entrepreneurs have the major control over all the economic activities. They organise and undertake production with the sole motive of profit making.
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RELATED QUESTIONS
State one example of positive economics.
What do you understand by positive economic analysis?
What do you understand by normative economic analysis?
Identify and discuss the nature of the following newspaper reports in terms of positive or normative economic analysis:
(i) "India jumped 23 points in the World Bank's ease of doing business index to 77th place, highest in 2 years." – The Economic Times
(ii) "Government should further liberalise the business rules." – The Economic Times
Distinguish between positive economics and normative economics, with suitable examples.
