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.

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Definitions:

Market Share

The share of a market held by a certain company or product.

Economic Losses

The difference between revenues earned from sales and the total costs of production, including opportunity costs, when the latter exceeds the former.

Market Supply

The total amount of a specific good or service that is available to consumers, determined by the sum of all individual suppliers' products in the market.

Long Run

A period sufficient for all inputs, including physical capital and labor, to be adjusted in the production process.