Which of the following is a positive statement? A. The federal government debt is too large. B. The executives of banks that received financial assistance from the government during the financial crisis should not have received bonuses C. There is evidence to show that smaller class sizes improve students GPA. D. State government should reduce taxes on gasoline Q-2 If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75. A. FALSE since the railroad should compare marginal benefit to marginal cost. B. TRUE since otherwise the railroad would make a loss. C. TRUE since the marginal benefit of one extra passenger is more than $75
please solve both questions
Q-1. Which of the following is a positive statement?
A. The federal government debt is too large.
B. The executives of banks that received financial assistance from the government during the financial crisis should not have received bonuses
C. There is evidence to show that smaller class sizes improve students GPA.
D. State government should reduce taxes on gasoline
Q-2 If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75.
A. FALSE since the railroad should compare marginal benefit to marginal cost.
B. TRUE since otherwise the railroad would make a loss.
C. TRUE since the marginal benefit of one extra passenger is more than $75
D. FALSE since rational decision makers face a trade-off
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