Which of the Following Statements Is an Example of Positive

question 178

Multiple Choice

Which of the following statements is an example of positive economic analysis?

• A) The inflation rate is too high.
• B) The government should worry less about inflation and more about unemployment.
• C) If the government increases the rate of growth of the money supply, the inflation rate will increase, ceteris paribus.
• D) The elderly live on a fixed income, so the government has an obligation to keep inflation rates low.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the profit made before deducting operating expenses.

Construction Costs

Expenses related directly to the construction of a building or infrastructure project, including materials, labor, and overhead.

Estimated Costs

Projected expenses related to the manufacturing of a product, execution of a project, or delivery of a service.

Provision for Loss

A Provision for Loss is an amount set aside in the accounts to cover identified but not yet realized losses or expenses.