Which of the Following Is a Positive Economic Statement

question 15

Multiple Choice

Which of the following is a positive economic statement?

• A) Income tax rates for the rich should be increased.
• B) The Bank of Canada should not increase interest rates until the unemployment rate falls below 7%.
• C) Rising global demand for gasoline has led to an increase in the price of oil.
• D) The government should increase spending on infrastructure to lower the unemployment rate.

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Definitions:

Lead Time

In purchasing systems, the time between recognition of the need for an order and receiving it; in production systems, it is the order, wait, move, queue, setup, and run times for each component.

Inexpensive

Having a low cost or price; not expensive.

Mathematical Model

A representation of a system, process, or relationship using mathematical concepts and language, often used to analyze or predict behavior.

Operations

The activities involved in the day-to-day running of a business that relate to the production and delivery of goods and services.