Which of the Following Is an Example of a Positive

question 121

Multiple Choice

Which of the following is an example of a positive statement?

• A)Prices rise when the government prints too much money.
• B)If welfare payments increase, the world will be a better place.
• C)Inflation is more harmful to the economy than unemployment.
• D)The benefits to the economy of improved equity are greater than the costs of reduced efficiency.

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Definitions:

Regressive

A tax system where the tax rate decreases as the taxable amount increases.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external effects.

Investment Income

Income generated from financial assets or investments, such as dividends, interest, or rental income.