Answer the following statements true (T) or false (F)
1. A positive economic statement is always true.
2. Positive economics deals with “what is” as opposed to “what ought to be.”
3. The largest part of U.S. national income takes the form of profits.
4. Consumption is the ultimate end of economic activity.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
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Little Richie Lemons, a thirteen-year-old former lemonade stand owner, quit the business and now searches for an after-school job. Is he officially unemployed?
A) No, because he was never employed in the first place. B) No, because he is under 16 years old. C) Yes, because he is no longer self-employed. D) Yes, because he is looking for work.
The Austrian school of economists stressed on the efficiency of the markets on the pretext that:
a. resources could be efficiently allocated through price system and free markets. b. governmental intervention was necessary for the efficient allocation of resources. c. the price charged under the free market system was always lower than under central planning. d. the market had never failed earlier. e. the market did not suffer from imperfect information.