Which of the Following Is a Positive Economic Statement

question 31

Multiple Choice

Which of the following is a positive economic statement?

• A)Everyone should live at the same standard of living.
• B)If the price of gasoline rises,a smaller quantity of it will be bought.
• C)The government should close income tax loopholes.
• D)U.S.firms should not be allowed to outsource production of goods and services.

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Definitions:

Marginal Cost

Indicates the change in total production cost that arises when the quantity produced is increased by one unit.

Output

The overall production of goods and services by a business or the entire economy.

MC Curve

The Marginal Cost Curve, which shows the cost of producing one more unit of a good or service.

Shutting Down

The short-run decision by a firm to cease production due to market conditions, though it may resume operations in the future.