Which of the Following Is a Positive Statement

question 52

Multiple Choice

Which of the following is a positive statement?

• A) When the price of a good goes up, consumers buy less of it.
• B) When the price of a good goes up, firms produce more of it.
• C) When the Federal government sells bonds, interest rates rise and private business investment is reduced.
• D) all of the above
• E) none of the above

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Definitions:

Money Income

Refers to the total income received in the form of money, including wages, salaries, and other earnings.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.

Purchases

The act of buying goods or services.

Product X

A placeholder name used to refer to a generic or unspecified product in economic and marketing contexts.