A normative statement is one that:
A. is based on the law of averages.
B. applies only to microeconomics.
C. applies only to macroeconomics.
D. is based on value judgments.
Answer: D
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Explain the differences between a federal budget deficit, a federal budget surplus, and the federal government debt
What will be an ideal response?
Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. The number of labor hours required to produce one unit of Good X in Country A is ProductivityCountry ACountry BGood X1.000.50Good Y0.200.70
A. 1. B. 0.5. C. 2. D. 1.43.
If the demand for a good falls when income falls, then the good is called an inferior good
a. True b. False Indicate whether the statement is true or false
A good salesperson can sell $100,000 worth of goods, while a poor one can sell only $10,000 worth of goods. Job applicants know if they are good or bad, but the firm does not
A firm will offer job applicants a choice between a fixed salary of $2,000 or a commission on the sale. Assume risk-neutral salespersons and no opportunistic behavior. Given that the firm wants to distinguish a prospective good salesperson from a poor one, what should be the commission on sales? A) Commission should be larger than 50%. B) Commission should be larger than 40%. C) Commission should be between 2% and 20%. D) Commission should be smaller than 2%.