Which of the Following Is a Positive Economic Statement

question 329

Multiple Choice

Which of the following is a positive economic statement?

• A)We should strive to achieve full employment in the United States.
• B)The President of the United States should promote stable prices in the United States.
• C)If the price of eggs increases, the quantity demanded of bacon will fall.
• D)We should try to eliminate poverty in the United States.

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Definitions:

Wage

The payment received by workers for their labor, typically expressed as an amount per hour or per year.

Factor Markets

Markets where services of the factors of production (labor, capital, land) are bought and sold.

Oligopolies

Market structures dominated by a small number of large firms, leading to competition that is less than in perfectly competitive markets but more than in monopolistic scenarios.

Factor Market

The marketplace for services of the factors of production (labor, capital, land, and entrepreneurship) where factors are bought and sold.