Which of the Following Is an Example of a Positive

question 234

Multiple Choice

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

• A) It is too hot to go jogging.
• B) Ceteris paribus, a teacher should award a higher grade if you study more hours for an economics test.
• C) When the price of an item increases, people respond by reducing their consumption of the item.
• D) The government should balance the budget.

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Definitions:

Retained Earnings

The residual net income available to a business after distributing dividends to its shareholders.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Gross Profit Percentage

A financial ratio that expresses the gross profit as a percentage of sales revenue, indicating the efficiency of production and cost management.