Economists contend that most economic decisions are, rational self-interest, because he attempting to increase his own income by identifying and satisfying someone else's wants, Alex sees that his neighbors' lawns all need mowing. generalizing from the particular to the general. Which of the following statements is true? economic resources are perfectly substitutable between the production of the two products. We can conclude that: the need to make choices because economic wants exceed economic means. C. Approval of the scope statement. D. the establishing of an overall view of the operation of the economic system. Ideally, value judgments are involved at the: Most of the disagreement among economists involves: "Economics is concerned with using scarce productive resources. The truth. 51.Which financial statement is primarily concerned with reporting the financial position of a business at a particular time? Ben's statement is normative, but Holly's is positive. The term "other things equal" means that: use the observed data to form an hypothesis about ice cream buying behavior. When an economist evaluates a positive statement, he or she is primarily examining evidence. This is an example of: A study found that the incidence of skin cancer increases along with the amount of time people work under fluorescent light, leading some people to conclude that fluorescent lighting is a cause of skin cancer. This example illustrates: Which of the following most closely relates to the idea of opportunity costs? 52.Financial statements are prepared: A positive cash flow is actually needed to generate profits. The economist's analysis in this case incorporates the idea of: A person should consume more of something when its marginal, social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity, choices that are made in seeking the best use of resources, The study of economics is primarily concerned with, a comparison of marginal benefits and marginal costs in decision making, individuals may make different choices because of different desired outcomes, people weigh costs and benefits to make decisions, most decisions involve changes from the present situation, Economics involves marginal analysis because, if the marginal benefit of the movie exceeds its marginal cost, the decision to engage in one activity means forgoing some other activity, all production involves the use of scarce resources and thus the sacrifice of alternative goods, The assertion that "There is no free lunch" means that, Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. Instead, what follows will shed light on our approach to what is being called a “pandemic.” The reason we put “pandemic” in quotes is because the definition of a pandemic … Normative statements are concerned primarily with: A. facts and theories. the good was produced to the point where its marginal cost exceeded its marginal benefit. Test Prep. A corporate bond issued by a computer manufacturer. Both statements are positive. O The Formulation Of Economic Policy. Consideration of positive statement Consideration of positive statement. When an economist evaluates a positive statement, he or she is primarily examining evidence. This is a reflection of. The production possibilities curve shows various combinations of two products that an economy can produce when achieving full employment. A normative statement is the opposite of a Positive statement in that a positive statement is concerned what something "is". D. objective and is based on facts. Accuracy of the work deliverables. David Hume explained it well in 1739, and Machiavelli used it two centuries earlier, in 1515. The basic purpose of the other-things-equal assumption is to, all factors other than the price of bananas (for example, consumer tastes and incomes) are assumed to be constant. It is reduces profit but does not impact cash flow (it is a non-cash expense). The line of division is not always clear. B. True or False: In drawing a particular budget line, money income and the prices of the two products are fixed. Holly's statement is normative, but Ben's is positive. allow one to reason about the relationship between variables X and Y without the intrusion of variable Z. 14. a. Price control has led to artificial shortage of edible oils. C) … See the answer. It is primarily concerned with production management. Camille is at the candy store with her grandmother, who offers to buy her $6 worth of candy. d. is proper provided the advocator is clear the position rests on personal assessment. The sunburns, not the fluorescent light, were the cause of the higher incidence of skin cancer. is illustrated by a point inside the production possibilities curve. Scientific criticism is not primarily concerned with moral values, but more with quantitative or categorical values. Purely descriptive statements or scientific predictions.A normative analysis is a statement of what ought to be. B. derived by deduction. But further analysis found that people who work in offices, where fluorescent light is common, suffer more sunburn on their vacations than other workers. C. subjective and is based on a value judgment. A. It is primarily concerned with the application of quantitative methods. A positive economic statement: Answer a. is always a mathematical expression. For example: A fall in incomes will lead to a rise in demand for own-label supermarket foods. The slope of a straight line can be determined by: Assume a household would consume $100 worth of goods and services per week if its weekly income were zero and would spend an additional $80 per week for each $100 of additional income. D. can be shown to be correct or incorrect. D. a. D. rational choice involving costs and benefits. Positive Statements. is a positive statement. A Positive analysis is concerned with what ought to be. d. It considers finished goods as a critical input. 6. Pages 21 Ratings 100% (11) 11 out of 11 people found this document helpful; This is a preview. specializing and engaging in international trade. what should be. The slope of the typical production possibilities curve: move the level of actual output on to the economy's production possibilities curve. This statement is fact-based and has no value judgment attached to it. The statement brings together for the first time all of the government’s policies for young people aged 13 to 19. 2. an increase in the average skill level of all occupational groups. Other things equal, an increase in a consumer's money income: can buy 5 lattes or 10 muffins if she chooses to buy only one of the two goods, Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys lattes and muffins. the prices of both products and money income are assumed to be constant. Normative statements are concerned with what something "ought" to be. Suppose an economist says that "Other things equal, the lower the price of bananas, the greater the amount of bananas purchased." Positive statements are concerned with what is, and normative statements are concerned with what someone thinks should be. B. what should be. You need enough cash to pay your employees and suppliers so that you can make goods. money, as such, does not produce anything, Money is not an economic resource because. 3. A positive statement is concerned primarily with: positive and correct "Economics is concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity." In financial accounting, a cash flow statement, also known as statement of cash flows or funds flow statement, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. c. Soap operas should be taken off television. Economics, generally speaking, is primarily concerned with: A) the operation of the bond and stock markets. The U.S. public should devote more resources to education. what … ... A positive statement must be testable but need not be true. The problems of aggregate inflation and unemployment are, National income grew by 2.7 percent last year. The advancement of new technology has been taking place since the beginning of human history. Course Hero is not sponsored or endorsed by any college or university. Holly argues that "Taxes should be increased on beer because college students drink too much." An example would be "The unemployment rate ought to be 4%". True or False: Purposeful behavior implies that everyone will make identical choices, True or False: Marginal analysis means that decision-makers compare the extra benefits with the extra costs of a specific choice, True or False: Rational individuals may make different choices because their preferences and circumstances differ, True or False: Choices entail marginal costs because resources are scarce, True or False: The production possibilities curve shows various combinations of two products that an economy can produce when achieving full employment, True or False: The entrepreneur's sole function is to combine other resources (land, labor, and capital) in the production of some good or service, True or False: Products and services are scarce because resources are scarce, True or False: An economy cannot produce at a point outside of its production possibilities curve because human economic wants are insatiable, True or False: The process by which capital goods are accumulated is known as investment, True or False: The present choice of position on the production possibilities curve will not influence the future location of the curve. The value of the dependent variable is determined by the value of the independent variable. This statement is: Holly's statement is normative, but Ben's is positive. True or False: Positive statements are expressions of value judgments. 15. If we are considering the relationship between two variables and release one of the other-things-equal assumptions, we would expect: 50 fewer pizzas will be purchased per week for every $1 increase in price. 11. "Macroeconomics is the part of economics concerned with individual units, such as a person, a household, a firm, or an industry." C.The statement of cash flows. Positive analysis can be used to determine whether policies are good or bad. If a positive relationship exists between x and y: If price (P) and quantity (Q) are directly related, this means that, comparing the absolute vertical change to the absolute horizontal change between two points on the line. The items in the cash flow statement are not all actual cash flows, but “reasons why cash flow is different from profit.” Depreciation expense Depreciation Expense When a long-term asset is purchased, it should be capitalized instead of being expensed in the accounting period it is purchased in. C) positive statements. School Columbia College; Course Title ECON 294; Type. persists because economic wants exceed available productive resources. If one … B. what ought to be. B. derived by deduction. Economics is primarily concerned with the study of: a. It is clear that the deregulation caused the shortage." The Expanded Access to Convalescent Plasma for the Treatment of Patients with COVID-19 program was an open-label, nonrandomized EAP that was primarily designed to provide adult patients who have severe or life-threatening (critical) COVID-19 with access to convalescent plasma. Thus, which of the following is an example of a positive, as opposed to normative, statement? Imagine an extreme scenario – you live in a street where an ogre walks up and down after sunset and hits anybody he sees on the head with a giant club. One has negative liberty to the extent that actions are available to one in this negative sense. D. the formulation of economic policy. A positive statement is concerned primarily with... What is. Scope verification is PRIMARILY concerned with which of the following? The book is primarily concerned with natural languages that function as full-fledged mother tongues for larger or smaller groups of people. If someone produced too much of a good, this would suggest that, implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost, Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. Which of the following is associated with macroeconomics? An economic theory/hypothesis is a normative statement. The economizing problem is: A. the need to make choices because economic wants economic means.
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