Which of the Following Is a Positive Economic Statement

question 188

Multiple Choice

Which of the following is a positive economic statement?

• A) Too much government spending is the biggest problem facing the U.S. economy.
• B) Creating jobs is the most serious problem facing the U.S. economy.
• C) Raising taxes provides additional revenue that should be used to finance health care.
• D) If taxes are over 50 percent of national income, job creation falls.

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Definitions:

Future Benefits

The expected gains or returns from an investment or policy, often used in evaluating its worth.

Accrued Product Warranty

A liability representing the estimated costs of fulfilling product warranty obligations.

Pre-tax Book Income

The income of a company before taxes are deducted, as reported in its financial statements.

Deferred Tax

Deferred tax refers to taxes that are accrued but not yet paid due to timing differences between the recognition of income or expenses for financial reporting and tax purposes.