Positive and Normative Statements Differ in That

question 52

Multiple Choice

Positive and normative statements differ in that

• A) positive statements can be tested, whereas normative statements cannot.
• B) normative statements can be tested, whereas positive statements cannot.
• C) normative statements never use the word "should."
• D) normative statements depict "what is" and positive statements depict "what ought to be."

Understand the factors that cause shifts in demand curves for goods and services.

Identify the characteristics and outcomes of goods being substitutes or complements.

Differentiate between a change in demand and a change in quantity demanded.

Recognize how consumer income changes impact the demand for normal and inferior goods.

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Definitions:

Immutable

Something that is unchangeable or unable to be altered over time.

Fluid Intelligence

The ability to solve new problems, use logic in new situations, and identify patterns without relying on pre-existing knowledge.

Crystallized Intelligence

A form of intelligence that involves the ability to use knowledge, experience, and skills that one has acquired over a lifetime.

Poverty

The state of having insufficient financial resources to meet basic living expenses like food, housing, and healthcare.