Which of the Following Represents an Example of Positive Analysis

question 25

Multiple Choice

Which of the following represents an example of positive analysis?

• A)How will the equilibrium price of corn be affected by a government subsidy?
• B)What is the best way to assist low-income families with affordable housing?
• C)Would taxes on emissions be the best way to reduce pollution?
• D)How can the government best design a tax cut?

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Definitions:

Operating Activities

Transactions and events related to the primary operations of a business, including revenue and expense activities.

Accounts Receivable

Funds that clients or customers are required to pay to a business for products or services delivered on credit.

Sales Revenues

The income received by a company from its sales of goods or services before any expenses are subtracted.

Accounts Payable

An account representing short-term liabilities to suppliers or creditors for goods and services received but not yet paid for.