A normative statement is generally based upon:

A. scientific fact.
B. a factual claim.
C. subjective beliefs.
D. data that can be tested.


Answer: C

Economics

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If a country's central bank does not intervene in the foreign exchange market, the country has

A) a crawling peg exchange rate policy. B) a fixed exchange rate policy. C) a flexible exchange rate policy. D) no exchange rate policy.

Economics

In Figure 6-5, if price falls from point A to point B along the unit-elastic demand curve,

A. total expenditure remains unchanged. B. total expenditure increases. C. total expenditure decreases. D. total expenditure first increases and then declines.

Economics

The MU of computers is initially larger than the MC of producing them in a free market. We may expect output of computers to

a. fall, MC to rise, and MU to rise. b. rise, MC to fall, and MU to fall. c. rise, MC to rise, and MU to fall. d. fall, MC to fall, and MU to rise.

Economics

Central banks can increase the money supply by:

a. Buying government securities. b. Selling foreign exchange. c. Raising margin requirements. d. All of the above. e. None of the above.

Economics