Which of the Following Is a Positive Statement

question 281

Multiple Choice

Which of the following is a positive statement?

• A) Taxes should be lower because then people get to keep more of what they earn, so they will work more.
• B) My economics class should last for two terms because it is my favorite class.
• C) A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.
• D) Given their negative impact on productivity, the government should eliminate labor unions.
• E) The class average on this test should be more than 80 percent.

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Definitions:

Marginal Cost

The outlay for creating another unit of a product or service.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.

Labor

The human effort, including physical and mental efforts, used in the production of goods and services.