Which of the Following Is an Example of a Positive

question 35

Multiple Choice

Which of the following is an example of a positive statement?

• A) We should cut back on our use of carbon-based fuels such as coal and oil.
• B) Increasing the minimum wage results in more unemployment.
• C) Every American should have equal access to health care.
• D) The Federal Reserve ought to cut the interest rate.

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Definitions:

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how much profit a company generates with the money shareholders have invested.

Debt

Debt represents money borrowed by one party from another, under the condition that it is to be paid back with interest, typically used for business operations or purchases.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume.

Labor-saving Equipment

Tools or machinery designed to reduce the amount of labor needed to perform a job, often leading to enhanced efficiency and lower labor costs.