Positive Economic Statements

question 114

Multiple Choice

Positive economic statements

• A) prescribe what should be.
• B) are related only to microeconomics.
• C) can be tested against the facts.
• D) cannot be tested against the facts.

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Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Government Expenditures

The total amount spent by the government for its operations, public services, and social welfare programs.

Aggregate Spending

The total spending on goods and services in an economy at a given overall price level and in a given time period.

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another, like income.