Which of the following statements is true?
A) Positive economics describes what people ought to do.
B) Normative economics describes what people actually do.
C) Positive economics generates objective descriptions that can be verified with data.
D) Normative economics is free from value judgments, tastes, and preferences of economic agents.
C
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The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had which of the following consistent results?
A) a decline in real wages due to an upward shift of the production function B) an increase in the rental price of capital along with a healthy stock market response C) a decline in real wages due to a downward shift of the MPL curve D) an increase in the rental price of capital due to an upward shift of the production function E) none of the above
A box of biodegradable baby diapers is an example of a(n) ________ good and also an example of a(n) ________ good.
A) inspection; experience B) credence; inspection C) credence; experience D) inspection; greenwashed
If a bank has $1,000,000 in reserves and checking deposits of $3,000,000 . what is the bank's reserve position if the required reserve ratio is 20 percent?
a. The bank has $500,000 of required reserves and $500,000 of excess reserves. b. The bank has $600,000 of required reserves and $400,000 of excess reserves. c. The bank has $400,000 of required reserves and $600,000 of excess reserves. d. The bank has $200,000 of required reserves and $800,000 of excess reserves.
The decision-making strategy that aims for adequate results because optimal results may necessitate excessive expenditure of resources is known as:
A. loss aversion. B. the adaptive rationality standard. C. satisficing. D. the present-aim standard of rationality.