Distinguish between a positive statement and a normative statement and provide examples
What will be an ideal response?
A positive statement is a description of how the world is. It is testable. A normative statement is a description of how the world ought to be. It is, by its very nature, not testable because there is no universally approved criterion by which the statement can be judged. "I will receive an A for this course," is a positive statement made by an economics student—it might not be true, but it is testable. "I will receive a good grade for this course," is a normative statement. Whether someone agrees with it depends on his or her interpretation of what makes for a "good" grade.
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The net worth of a bank is
A. equal to the value of assets. B. equal to the value of deposits. C. equal to the value of liabilities. D. the value of assets less liabilities. E. the value of loans and securities.
Dividing (P x Q) by V2 times gives:
a. A stock value b. A flow value. c. Neither a stock nor a flow value. d. Real GDP
In the wireless communication industry, firms that provide broadband access to the Internet are best regarded as
A) platforms in a shared-input market. B) end users in a shared-input market. C) platforms in a matchmaking market. D) end users in a matchmaking market.
Which of the following is characteristic of DVCs?
A. A large percentage of the labor force is in agriculture. B. High levels of saving and investment. C. High labor productivity. D. High levels of training.