Which of the Following Is an Example of a Positive

question 47

Multiple Choice

Which of the following is an example of a positive economic statement?

• A) Workers with families should be paid at least the minimum wage.
• B) If crime rates were reduced, the world would be a better place to live.
• C) Marginal tax rates should be reduced for individuals in the highest tax bracket.
• D) An increase in the price of gasoline will cause a reduction in the amount of gasoline purchased.
• E) Corrupt politicians ought to be voted out of office.

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Definitions:

Unit Variable Cost

The cost that varies directly with the production volume, defined per unit of production.

Sensitivity Analysis

An approach to assess how different values of an independent variable can affect a particular dependent variable under a given set of assumptions.

Cost Volume Profit

A financial analysis method that helps determine the breakeven point for a business, understanding how changes in costs and volume affect a company's profit.

Variables Changed

Refers to alterations made to the elements or conditions in an experiment or model to observe different results.