Which of the Following Is a Positive Economic Statement

question 31

Multiple Choice

Which of the following is a positive economic statement?

• A)Everyone should live at the same standard of living.
• B)If the price of gasoline rises,a smaller quantity of it will be bought.
• C)The government should close income tax loopholes.
• D)U.S.firms should not be allowed to outsource production of goods and services.

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Definitions:

Marginal Cost

The financial outlay involved in producing a supplementary unit of a good or service.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a primary energy source.

Industry Output

The total production of goods and services produced by a specific sector of the economy over a given period.

Marginal Cost

The cost incurred from producing one additional unit of a good or service.