The difference between positive economic statements and normative economic statements is that
a. positive statements are based on opinion while normative statements are based on fact
b. positive statements are true and normative statements are often false
c. positive statements are often false and normative statements are true
d. positive statements are based on fact while normative statements are based on opinion
e. both b and d.
D
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What is eminent domain and what gives the government the authority to exercise eminent domain?
What will be an ideal response?
Happy Cows is a perfectly competitive dairy farm that has consistently faced a 50 percent chance of a high demand of $5 and a 50 percent chance of a low demand of $4. The managers of Happy Cows learn that there is now a 50 percent chance of a high demand of $8 and a 50 percent chance of a low demand of $2. All else equal, the change in the high and low demand values makes an accurate forecast
________ valuable to Happy Cows as the firm stands to gain ________ profit from an accurate forecast. A) more; less B) less; less C) less; more D) more; more
When Americans increase their demand for Japanese goods
A) the demand for dollars will rise, and the demand for yen will rise. B) the demand for dollars will fall, and the demand for yen will rise. C) the supply of dollars will rise, and the demand for yen will rise. D) the supply of dollars will fall, and the demand for yen will fall.
Graphically, deadweight loss is shown by the:
A. welfare loss rectangle. B. welfare loss triangle. C. consumer surplus loss triangle. D. tax revenue rectangle.