Which of the Following Represents a Positive Statement

question 141

Multiple Choice

Which of the following represents a positive statement?

• A) A higher income tax rate will reduce the amount of time that people spend working.
• B) Teenage unemployment should be reduced.
• C) We should raise the standard of living for the elderly.
• D) A decrease in tax rates is needed to help the poor.

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Definitions:

Inflation Rate

The pace at which the overall price level for goods and services increases, diminishing the buying power.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

Base-Year Prices

Prices from a specific base year used to express the real value of goods and services in order to remove the effects of inflation over time.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.