Which of the Following Is a Positive Statement

question 47

Multiple Choice

Which of the following is a positive statement?

• A) An economist should test every theory at least twice.
• B) Increases in the minimum wage cause unemployment.
• C) We ought to deregulate the mortgage market.
• D) The government must provide unlimited health care to citizens.
• E) We should forgo some current consumption in order to invest in the future.

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Definitions:

Fixed Portions

Parts of costs or expenses that do not change with the level of production or sales volume, such as rent or salaries.

Break-Even Point

The financial stage where total costs equal total revenue, making the operation neither profitable nor loss-making.

Variable Expenses

Expenses that vary directly with the level of business activity.

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent or salaries.