Which of the Following Is an Example of a Positive

question 59

Multiple Choice

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

• A)Workers with families should be paid at least the minimum wage.
• B)If crime rates were reduced, the world would be a better place in which to live.
• C)Marginal tax rates should be reduced for individuals in the highest tax brackets.
• D)An increase in the price of gasoline will cause a reduction in the amount purchased.
• E)Corrupt politicians ought to be voted out of office.

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Definitions:

Economic Profits

The profit a company makes after accounting for both the explicit costs of production and the opportunity costs of capital.

Long Run

A period in which all factors of production and costs are variable, typically allowing for full adjustment to changes.

Market Equilibrium

A situation in which the quantity of goods or services supplied is equal to the quantity demanded, leading to no pressure for price to change.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenue, showing the total return exceeding all opportunity costs.