Which of the Following Is a Positive Statement

question 157

Multiple Choice

Which of the following is a positive statement?

• A) The United States should fight inflation even if it raises unemployment.
• B) What to do with Social Security is the most important economic issue today.
• C) A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice.
• D) Because they decrease productivity, labor unions should be eliminated.

---

Definitions:

Prime Rate

Rate of interest that banks charge their most creditworthy customers.

Mosaic Law

A collection of laws, moral codes, and religious instructions attributed to Moses in the Jewish and Christian traditions, forming the basis of biblical law.

Koran

The holy book of Islam, believed to be the word of God (Allah) as revealed to the Prophet Muhammad.

Interest

The cost of borrowed funds.