Which of the Following Is a Positive Economic Statement

question 31

Multiple Choice

Which of the following is a positive economic statement?

• A)Everyone should live at the same standard of living.
• B)If the price of gasoline rises,a smaller quantity of it will be bought.
• C)The government should close income tax loopholes.
• D)U.S.firms should not be allowed to outsource production of goods and services.

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Definitions:

Perfectly Elastic

A situation where the demand or supply for a product is infinitely responsive to changes in price, shown as a horizontal line on a graph.

Loanable Funds

A concept in economics that describes the market where savers supply funds for loans to borrowers.

Free-Land Era

A historical period characterized by the availability and acquisition of land at little to no cost, usually to promote settlement and development.

Zero Price

A situation where a product or service is offered to consumers at no cost, often as a part of a promotional strategy or business model.