Which of the Following Is a Positive Statement

question 417

Multiple Choice

Which of the following is a positive statement?

• A) The government must provide health insurance so that the poor can obtain decent medical treatment.
• B) The government should spend more on education.
• C) My favorite dinner is pizza and soda.
• D) An increase in the price of pizza will lead fewer students to buy pizza.

Discuss the welfare implications of trade and trade policies for different stakeholders.

Use Edgeworth Box and other economic diagrams to explain resource allocation, trade possibilities, and efficiency.

Understand the concept of market failure and its causes.

Analyze the role of externalities in causing inefficient economic outcomes.

---

Definitions:

Breaks Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Short Run

A time period during which at least one input, like plant size or capital, is fixed and cannot be changed, focusing on immediate operational decisions.

Scale of Production

The size or magnitude of manufacturing operations, which can influence costs, efficiency, and profitability.

Average Costs

The total cost of production divided by the quantity of output produced, indicating the cost of producing each unit.