Which of the Following Is a Positive Statement

question 15

Multiple Choice

Which of the following is a positive statement?

• A)My economics class should last for two terms because it is my favourite class.
• B)A 10 per cent increase in income leads to a 4 per cent increase in the consumption of beef.
• C)Given their negative impact on productivity, the government should eliminate labour unions.
• D)Taxes should be lower because then people get to keep more of what they earn.

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Definitions:

Raw Materials

Basic materials extracted from natural resources or produced through agriculture, which are used in the production of goods and services.

Injection

Any spending other than by households or any income other than from resource earnings; includes investment, government purchases, exports, and transfer payments.

Circular Flow

An economic model that illustrates the continuous movement of goods, services, and money between producers and consumers in an economy.

Circular Flow Model

A diagram that illustrates the movement of goods, services, and money between households and businesses in the economy.