Which of the Following Is a Positive Statement

question 301

Multiple Choice

Which of the following is a positive statement?

• A)The rate of unemployment should be 4%.
• B)A high rate of economic growth should be a more important economic goal than a low rate of inflation.
• C)The federal government spends half of its budget on national defense.
• D)Everyone in the country should be covered by national health insurance.

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Definitions:

Exports

Goods and services sold to other countries.

World Production

The total output of goods and services produced by all countries around the globe.

Autarky

A situation in which a country does not trade with other countries.

Comparative Advantage

The advantage conferred on an individual or country in producing a good or service if the opportunity cost of producing the good or service is lower for that individual or country than for other producers.