Which of the following is true regarding a normative statement?

i. It uses the ceteris paribus assumption.
ii. It is a value judgment.
iii. It accounts for opportunity costs.
A) i and iii
B) ii and iii
C) i only
D) ii only
E) i, ii, and iii

D

Economics

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The idea that the value of money is equal across countries is known as

A) interest rate parity. B) the expected profit parity effect. C) purchasing power parity. D) exchange rate parity.

Economics

Suppose that Jane earns $10,000 in year 1 and $15,000 in year 2, while Jim earns $15,000 in year 1 and $10,000 in year 2. Is there income equality for the two individuals?

A. The annual data indicate equality, but the two-year data indicate inequality B. The annual data indicate inequality, but the two-year data indicate equality C. Both the annual and the two-year data indicate equality D. Both the annual and the two-year data indicate inequality

Economics