Which of the Following Is an Example of a Positive,as

question 40

Multiple Choice

Which of the following is an example of a positive,as opposed to normative,statement?

• A)Inflation is more harmful to the economy than unemployment is.
• B)If welfare payments increase,the world will be a better place.
• C)Prices rise when the government prints too much money.
• D)When public policies are evaluated,the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.

---

Definitions:

Variable Cost

A cost that changes in proportion to the level of output or activity in a business.

Monthly Interest Rate

The percentage of interest that is charged or earned on a principal amount on a monthly basis.

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.

Annual Percentage Rate

A measure of the cost of borrowing, including interest and other fees, represented as a yearly rate and providing a comprehensive view of the loan cost.