Which of the Following Statements Is in the Realm of Positive

question 65

Multiple Choice

Which of the following statements is in the realm of positive economics?

• A)The president should propose a tax cut because taxes are too high.
• B)Studies show that if taxes are cut,unemployment falls.
• C)The budget deficit is too high and should be lowered.
• D)Studies show that a national debt of over a trillion dollars is bad for the country and should not be allowed to occur.
• E)The share of defense spending in the budget ought to be changed.

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Definitions:

T-test

A statistical test used to compare the means of two groups, often employed to determine if there are significant differences between them.

Alpha

In statistics, alpha refers to the probability of making a Type I error, which is the incorrect rejection of a true null hypothesis.

Two-Tier Wage System

A remuneration model where two distinct pay scales exist for employees within the same organization, often based on seniority or job role.

Labor Costs

The total sum of all wages, benefits, and taxes that a business must pay for its employees.