Which of the Following Is a Positive Economic Statement

question 188

Multiple Choice

Which of the following is a positive economic statement?

• 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:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, essentially measuring the net benefit to producers from selling at a market price above their minimum acceptable price.

Government Policy

The actions or inactions taken by the governing body to address public issues, which can influence economic conditions, social welfare, and the regulatory environment.

Producer Surplus

The differentiation between the selling price sellers are willing to accept and the price they eventually get.

Government Policy

Strategies and measures adopted by a government to guide its actions in the pursuit of specific goals and objectives.