Which of the Following Is an Example of a Positive

question 62

Multiple Choice

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

• A) The economy's real output increased at about 3 per cent last year and the unemployment rate decreased.
• B) A central bank should not print too much money because inflation could result.
• C) Parliament should stabilise the social security system by raising taxes now.
• D) A healthy economy should grow at about 5 per cent a year in order to provide enough goods for a growing population.
• E) The government farm products surplus should be distributed to the needy.

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Definitions:

Physical Flow

The movement of physical goods or materials within a production process or supply chain.

Ending Inventory

The total value of all the goods available for sale at the end of an accounting period.

Average Unit Cost

The cost incurred for producing a single unit, calculated by dividing the total cost of production by the number of units produced.

Units

A measure of quantity representing the amount of product or service.