A Newspaper Editorial Explaining What Should Be Done to Reduce

question 39

Multiple Choice

A newspaper editorial explaining what should be done to reduce the national debt is an example of

• A)the ceteris paribus assumption.
• B)microeconomics.
• C)functional economics.
• D)positive economics.
• E)normative economics.

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors, using fewer resources.

Opportunity Cost

A different way to describe it would be the cost of missing out on the benefits of the second-best option when a choice is made.