Which of the following statements about economic analysis is true?
A) Unlike positive economic analysis, normative economic analysis can be tested.
B) There is much more disagreement among economists over normative economic analysis than over positive economic analysis.
C) Normative economic analysis is concerned with "what is," whereas positive economic analysis is concerned with "what ought to be."
D) Economics is primarily about normative analysis, which measures the costs and benefits of different courses of action.
B
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Just as indifference maps represent consumer tastes, so isoquant maps represent a producer tastes.
Answer the following statement true (T) or false (F)
In an economic model, an exogenous variable is
A) a stand-in for more complicated variables. B) determined by the model itself. C) determined outside the model. D) a variable that has no effect on the workings of the model.
In the price-leadership model,
a. firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for their product. b. each firm acts as a price taker. c. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions. d. firms coordinate their decisions to act as multiplant monopolies.
An export subsidy helps reduce the selling price of a product by allowing individual producers to charge less and still cover all of their production costs
a. True b. False Indicate whether the statement is true or false