The Difference Between a Positive Economic Statement and a Normative

question 133

Multiple Choice

The difference between a positive economic statement and a normative statement is that

• A)a positive statement must be true; a normative statement is often not true
• B)a normative statement must be true; a positive statement is often not true
• C)a positive statement can be verified; a normative statement cannot
• D)a normative statements can be verified; a positive statement cannot
• E)a positive economic statement is a moral judgment; a normative economic statement is not a moral judgment

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Definitions:

Maturity Value

The total amount payable to an investor at the end of a security's hold period, including both the principal and interest.

Maturity Value

The total amount that will be paid to an investor at the maturity date of a financial instrument, including principal and interest.

Bank Discount

The difference between the face value of a banknote or security and its selling price, before it reaches its maturity.

Discount Period

The time frame within which a buyer can pay less than the full amount due by taking advantage of a discount offered by the seller.