For Economists, What Are the Two Types of Statements About

question 128

Multiple Choice

For economists, what are the two types of statements about the world?

• A) positive statements and false statements
• B) true statements and false statements
• C) true statements and normative statements
• D) positive statements and normative statements

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Definitions:

Par Value

Par Value is the nominal or face value of a stock or bond, as stated by the issuer, and has little relation to its market value.

Income Statement

The income statement is a financial report that summarizes the revenues, costs, and expenses incurred during a specific period of time, typically a fiscal quarter or year.

Total Liabilities

The aggregate of all debts and financial obligations a company owes to external parties.

Contra-Liability Account

An account that reduces the amount of a liability, often used to record discounts or allowances that decrease the total amount owed by a company.