Which of the Following Is an Example of a Positive

question 135

Multiple Choice

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

• A) In order to reduce the budget deficit, tax rates should be increased.
• B) In order to increase employment, the minimum wage must be decreased.
• C) If payroll taxes are raised, then the government budget will show a surplus.
• D) If gas prices fall, consumers should purchase more gas.

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Definitions:

Restricted

Pertains to assets or securities that are not fully transferable until certain conditions have been met, often used in reference to stocks.

Bond Indenture Agreements

Legal documents specifying the rights and obligations of both the issuing company and the bondholders, including details about interest payments and the maturity date.

Dividends Low

A situation where a company chooses to distribute a relatively small portion of its earnings to shareholders as dividends.

Terms

Conditions and stipulations that govern the agreement or contract between parties, often detailing the obligations, rights, and responsibilities of each party.