Normative economics is
A) analysis involving value judgments about economic policies; or a statement of "what ought to be."
B) analysis that is strictly limited to making either purely descriptive statements or scientific predictions.
C) analysis of the behavior of the economy as a whole.
D) decision making undertaken by households and business firms.
A
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Between 1950 and 2015 the productivity of wheat farmers in the United States more than doubled. This means that
A) the total amount of wheat produced more than doubled. B) the amount of land and other resources devoted to wheat production more than doubled. C) the amount of wheat produced by the average farmer more than doubled. D) the incomes of wheat farmers more than doubled.
We would expect the cross elasticity between tennis racquets and tennis balls to be:
a. negative. b. positive. c. zero. d. one. e. infinite.
What was the rate of growth of real GDP from 1960 to 2010?
a. 19% b. 81% c. 110% d. 376%
Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?
a. Because sometimes the market does not function well. b. Because opportunity costs are different for different goods. c. Because there are trade-offs involved in any decision. d. Because of existence of efficient markets.