Which Statement Is a Positive Economic Statement

question 287

Multiple Choice

Which statement is a positive economic statement?

• A)Government has grown too large and should be reduced.
• B)There has been an increase in the rate of inflation.
• C)Government should be subject to the same rules as all other institutions.
• D)Women should be paid as much as men are for the same work.

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Definitions:

Present Value

Today's value of a future money amount or sequence of cash flows, determined by a certain rate of return.

Initial Investment

The initial amount of money invested in a project or venture.

Financial Break-Even

The point at which total revenues equal total costs and expenses, leaving no net gain or loss.

Accounting Basis

Refers to the method under which income and expenses are recognized and reported. The two primary methods are cash basis and accrual basis accounting.