Which of the following statements about economic analysis is true?
A) Unlike positive economic analysis, normative economic analysis can be tested.
B) There is much more disagreement among economists over normative economic analysis than over positive economic analysis.
C) Normative economic analysis is concerned with "what is," whereas positive economic analysis is concerned with "what ought to be."
D) Economics is primarily about normative analysis, which measures the costs and benefits of different courses of action.
B
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Compared to a single-price monopoly, a perfectly competitive market with the same costs produces ________ output and has a ________ price
A) less; lower B) less; higher C) more; lower D) more; higher
Inflation is harmful to society because it often
a. causes consumers' purchasing power to decline b. causes sellers' costs to increase c. causes nominal wages to fall d. causes purchasing power to be redistributed in haphazard ways e. has no effect at all on anyone's purchasing power