Which of the Following Statements Is an Example of Positive

question 178

Multiple Choice

Which of the following statements is an example of positive economic analysis?

• A) The inflation rate is too high.
• B) The government should worry less about inflation and more about unemployment.
• C) If the government increases the rate of growth of the money supply, the inflation rate will increase, ceteris paribus.
• D) The elderly live on a fixed income, so the government has an obligation to keep inflation rates low.

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Definitions:

Sampling Process

The practice of selecting a subset of individuals, items, or data points from within a larger population to estimate characteristics of the whole population.

Sampling Error

The discrepancy between the statistical characteristics of a population and those of a sample supposedly representing that population.

Bias

A systematic error or deviation from true results or values, caused by factors that skew the data in a certain direction.

Sampling

The process of selecting a subset of individuals from a population to estimate characteristics of the whole population.