Which of the Following Is a Statement of Positive Economics

question 201

Multiple Choice

Which of the following is a statement of positive economics?

• 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:

Dollar Amount Changes

Alterations in financial figures, reflecting increases or decreases in values such as revenues, expenses, assets, or liabilities over a period.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash within a year.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories (assets, liabilities, and equity) is represented as a proportion of the total account.

Profitability Analysis

The process of evaluating the ability of a business to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.