Normative economics answers the question, "What ought to be?" Positive economics predicts the consequences of alternative actions, answering the questions, "What is?" or "What will be?"

Coal-fired steam locomotives become more efficient for railroads relative to oil-burning diesel locomotives as

A) the price of coal increases. B) the price of oil increases. C) coal-fired steam locomotives become larger. D) railroad freight rates increase.

Suppose the central bank of Blugonia has the responsibility of controlling the supply of money in the economy. This responsibility of the central bank is considered a part of _____

a. budget balancing b. decentralized banking c. monetary policy d. trade policy