Which of the Following Is a Positive Statement

question 47

Multiple Choice

Which of the following is a positive statement?

• A) An economist should test every theory at least twice.
• B) Increases in the minimum wage cause unemployment.
• C) We ought to deregulate the mortgage market.
• D) The government must provide unlimited health care to citizens.
• E) We should forgo some current consumption in order to invest in the future.

---

Definitions:

Fixed Asset Acquisition

The process of purchasing fixed assets, like property, plant, and equipment, that are used over a long period in the operation of a business.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Earnings Before Interest and Taxes

A measure of a firm's profit that includes all expenses except interest and income tax expenses.

Cash Coverage Ratio

A liquidity metric that measures a company's ability to pay off its debt with its cash flow, demonstrating financial health.