Which of the Following Is an Example of a Positive

question 234

Multiple Choice

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

• A) It is too hot to go jogging.
• B) Ceteris paribus, a teacher should award a higher grade if you study more hours for an economics test.
• C) When the price of an item increases, people respond by reducing their consumption of the item.
• D) The government should balance the budget.

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Definitions:

Average Total Cost

The total cost divided by the quantity of output produced, representing the cost per unit of output.

Demand Schedule

A table that shows the quantity demanded of a good or service at different price levels, illustrating the relationship between price and demand.

Corn Industry

The sector of the economy involved in the production, processing, and distribution of corn and corn-related products.

Excess Profits

Profits that exceed the normal expected return on investment, often occurring in industries with little to no competition.