A Statement Describing How the World Is Now

question 28

Multiple Choice

A statement describing how the world is now

• A) is a normative statement.
• B) is a positive statement.
• C) would only be made by an economist speaking as a policy adviser.
• D) would only be made by an economist employed by the government.

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Definitions:

Variable Resource

A factor of production whose quantity can be changed easily by a firm in the short run to adjust output levels.

Total Variable Cost

The sum of all variable expenses associated with producing a particular level of output.

Total Fixed Cost

An expenditure that does not change with the level of production or sales over a short period.

Average Variable Costs

The costs of labor, material, and other inputs that change with the level of production or sales volume.