Which of the Following Is a Positive Statement

question 59

Multiple Choice

Which of the following is a positive statement?

• A) The government must lower the price of a pizza so that more students can afford to buy it.
• B) The best level of taxation is zero percent because then people get to keep everything they earn.
• C) My economics class should last for two terms because it is my favorite class.
• D) An increase in tuition means fewer students will apply to college.

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Definitions:

Endogenous Factors

Internal factors that originate within an economic system or model and determine its behavior and state.

Exogenous Factors

External influences that can cause changes in an economic system, outside of the system’s control.

Price Shock Theory

A theory suggesting that sudden and unexpected changes in prices (typically upwards) can have significant adverse effects on an economy.

Business Cycle

The economic cycle of expansion and contraction that occurs within an economy.