Which of the Following Is a Statement with Positive Economic

question 210

Multiple Choice

Which of the following is a statement with positive economic analysis?

• A) Lower wages increase employment and reduce the unemployment rate.
• B) Slower money growth reduces inflation.
• C) A reduction in the size of the budget deficit will reduce interest rates.
• D) all of the above

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Variable Input

An input in the manufacturing process that changes in quantity relative to the level of production output.

Profit-Maximizing Level

The point at which a company achieves the highest profit possible, considering the level of output, costs, and pricing.

Nonlabor Resources

Inputs used in the production process that are not related to direct human labor, such as capital, land, and raw materials.