Which of the Following Is Not an Example of a Positive,as

question 15

Multiple Choice

Which of the following is not an example of a positive,as opposed to normative,statement?

• A)Higher gasoline prices will reduce gasoline consumption.
• B)Equality is more important than efficiency.
• C)Trade restrictions lower our standard of living.
• D)If a nation wants to avoid inflation,it will restrict the growth rate of the quantity of money.

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Definitions:

Fixed Costs

Regardless of how much is produced or sold, certain costs like rent, employee salaries, and insurance payments do not vary.

Variable Costs

Expenses that change in proportion to the activity of a business.

Selling Price

The price at which a product or service is sold to the customer.

Capital Structure

The composition of a company's funding through debt and equity, and how it impacts its risk and value.