Which of the Following Is an Example of a Positive

question 55

Multiple Choice

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

• A) The U.S.public should devote more resources to education.
• B) The poor should pay lower taxes and the rich should pay higher taxes.
• C) Soap operas should be taken off television.
• D) If you drop a ball from the top of a building,it will fall to the ground.

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Definitions:

Sales to Total Assets Ratio

A financial ratio that measures a company's ability to use its assets to generate sales, calculated by dividing sales by total assets.

Cost of Merchandise Sold

The total cost incurred to purchase or produce the goods sold by a company during a specified period, directly affecting the gross profit.

Report Form

A layout for financial statements where the balance sheet is presented with assets followed by liabilities and equity in a vertical format.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment, including assets, liabilities, and equity.