CA Foundation P4 · Chapter 1 · Question 4 of 15
Which of the following is a positive statement?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A rise in excise duty on tobacco products reduces their consumption
Explanation
A positive statement describes 'what is' and can be tested against facts. The statement about excise duty and consumption can be verified with data. The other options contain value judgements ('ought to', 'should', 'unfair') and are therefore normative.
More Nature and Scope of Business Economics MCQs
- Q6The basic economic problem of scarcity arises because:
- Q7In a capitalist economy, the allocation of resources is primarily guided by:
- Q8Which of the following is NOT a feature of a socialist economy?
- Q9Which of the following is commonly cited as a major demerit of a capitalist economy?
- Q10Mr. Rao runs a business in his own building, which could otherwise be rented out for Rs. 2,40,000 a year. He has invested Rs. 10,00,000 of…