Which of the Following Is a Statement of Positive Economics

question 19

Multiple Choice

Which of the following is a statement of positive economics?

• A)New tax laws are needed to help the poor.
• B)Teenage unemployment should be reduced.
• C)We should increase Social Security payments to the elderly
• D)An increase in tax rates will reduce unemployment.
• E)The poorest quintile of the population should receive 10 percent of total income.

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Definitions:

Sustainable Rate Of Growth

The maximum rate at which a company can grow its sales and earnings without increasing its financial leverage or debt.

Retention Ratio

The retention ratio is a financial metric indicating the percentage of a company's earnings that are not paid out as dividends but are reinvested back into the business.

Profit Margin

A financial metric that measures the percentage of revenue remaining after deducting all expenses, indicating the efficiency and profitability of a company's operations.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing debt or equity financing.