When Al Makes the Statement, "The Cost of Living Has

question 95

Multiple Choice

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

• A)making a positive statement.
• B)identifying the standard of living- cost of living tradeoff.
• C)making a negative statement.
• D)making a normative statement.
• E)testing an economic model.

---

Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a certain period of time.

Effective Price

The final price a consumer pays for a product or service after accounting for any discounts, taxes, or additional charges.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity demanded by consumers at those prices.

Per-Unit Burden

The cost or burden imposed on each unit of a good or service, often in the context of taxes or subsidies.