Which of the Following Is a Positive Statement

question 6

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 investment is reduced.
• D)all of the above
• E)none of the above

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Definitions:

Cash Payments

Transactions in which money is paid out or disbursed by a business, typically related to operational expenses, purchases, or other financial obligations.

Raw Materials Inventory

The total cost of all components and materials a company holds that are yet to be used in the manufacturing process.

Direct Material

Direct Material refers to the raw materials that can be directly attributed to the production of goods, clearly identifiable and quantifiable.

Production Needs

Refers to the resources and requirements necessary to manufacture goods or provide services, including materials, labor, and machinery.