Which of the Following Is a Positive Statement

question 51

Multiple Choice

Which of the following is a positive statement?

• A) An unemployment rate of 9 percent is a national disgrace.
• B) Unemployment is a more important problem than inflation.
• C) When the national unemployment rate is 9 percent, the unemployment rate for inner-city youth is often close to 40 percent.
• D) Unemployment and inflation are equally important problems.

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, which has been accelerated by advances in transportation and communication technology, with significant implications for economies, culture, and political systems.

Hourly Wages

The amount of money paid to an employee for one hour of work.

Income Effect

Variations in the income levels of individuals or economies and the resultant effects on the demand for goods or services.

Substitution Effect

The economic understanding that as prices rise or incomes decrease consumers will replace more expensive items with less costly alternatives.