Statements about what ought to be are called
A) positive statements.
B) normative statements.
C) assumptions.
D) implications.
B
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The above figure shows the production possibility frontier for a country. What is the opportunity cost to move from point D to point B?
A) 12 tons of rice B) 15 thousand bottles of wine C) 6 thousand bottles of wine D) 9 thousand bottles of wine E) Nothing, it is a free lunch.
A monopolistically competitive firm will always choose to produce where
A) marginal revenue equals marginal cost. B) marginal cost meets the demand curve. C) average total cost meets the demand curve. D) average total cost is minimized.
A fixed exchange rate system crisis may be accompanied or followed by
A) unexpected gains of international reserves. B) revaluation of a currency. C) devaluation of a currency. D) gains in comparative advantage. E) deflationary pressures within the country.
An negative externality is present whenever:
a. the private marginal cost of an activity exceeds the private marginal benefit. b. the private marginal benefit of an activity exceeds the private marginal cost. c. the social marginal cost of an activity exceeds the private marginal cost. d. none of the above