Which of the Following Is a Positive Statement

question 11

Multiple Choice

Which of the following is a positive statement?

• A) An unemployment rate of 7 percent or higher is a national disgrace.
• B) Unemployment is a less important problem than inflation.
• C) When the unemployment rate in an economy is 7 percent, the unemployment rate of the urban population is often close to 40 percent.
• D) Unemployment and inflation are equally important problems.
• E) An inflation rate of 7 percent is too high.

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or production, such as rent, salaries, and insurance.

Variable Costs

Expenses that fluctuate based on the amount of products or services a company generates.

Break-even Sales

The amount of revenue that a business must generate to cover its fixed and variable costs before starting to realize a profit.

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business, such as rent, salaries, and insurance premiums.