Which of the Following Is a Positive Economic Statement

question 90

Multiple Choice

Which of the following is a positive economic statement?

• A)People should not buy imported fruits and vegetables.
• B)The government should subsidize solar power for homeowners.
• C)The minimum wage law causes unemployment.
• D)The number of work visas should not be limited by the government.

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Definitions:

Inelastic

A situation in which the demand or supply for a good or service is relatively unresponsive to changes in price.

Price Elasticity

The measurement of demand's elasticity to price changes for a particular good.

Midpoint Formula

A method used in mathematics to calculate the midpoint, or average, of two points on a line segment.

Price Elasticity

The degree of interplay between a good's demanded quantity and its price movement.