In Economics, Normative Statements Are About

question 460

Multiple Choice

In economics, normative statements are about

• A) the way things are.
• B) the way things ought to be.
• C) marginal costs, not marginal benefits.
• D) marginal benefits, not marginal costs.

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Definitions:

Research and Development

The systematic investigation and innovation aimed at the discovery and application of new knowledge, typically to create new products or improve existing ones.

Restraint of Trade

Legal term referring to any activity or agreement that restricts or impedes free competition in the market, often deemed unenforceable or illegal.

Horizontal

Describes a peer relationship in business or management settings, implicating equivalence rather than hierarchy.

Vertical

Describes the integration or arrangement within a supply chain where a company controls multiple stages of production or distribution, from raw materials to final product delivery.