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:

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are close substitutes, leading to price determination through supply and demand.

Average Total Costs

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced, representing the cost per unit of output.

Competitive Market

A market structure characterized by a large number of sellers and buyers where no single party can influence the price.

Market Price

The present value at which a service or asset is available for purchase or sale within a specific market.