Which of the Following Is an Example of a Positive

question 279

Multiple Choice

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

• A) The unemployment rate last month was 5.4 percent.
• B) The unemployment rate last month was too high.
• C) Because of the high unemployment rate last month the government should increase government spending.
• D) The unemployment rate should be measured differently because it doesn't include students who can't find jobs.

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Definitions:

Capital Budgeting Techniques

Methods utilized by businesses to evaluate and prioritize potential expenditures or investments based on their expected returns.

Payback Period

The amount of time it takes for an investment to generate enough cash flow to recover the initial outlay.

Modified Accelerated Cost Recovery System (MACRS)

A tax depreciation system in the United States that allows the accelerated write-off of property under various categories and periods.

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method.