Which of the Following Is a Positive Economic Statement

question 184

Multiple Choice

Which of the following is a positive economic statement?

• A) The federal minimum wage should be raised to $6.50 per hour.
• B) The United States spends too much on national defense.
• C) Higher rates of investment lead to higher rates of economic growth.
• D) Economics is more interesting to study than history.

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Definitions:

Framing

A cognitive bias in which people react to a particular choice in different ways depending on how it is presented.

Concept

A mental category that is used to group objects, events, and characteristics.

Heuristic

A simple, efficient rule, whether hard-coded by evolutionary processes or learned, used to make decisions or solve problems.

Morphemes

The smallest grammatical units in a language that carry meaning.