When Al Makes the Statement, ʺThe Cost of Living Has

question 325

Multiple Choice

When Al makes the statement, ʺThe cost of living has increased 10 percent over the past 10 years,ʺ he is

• A) making a normative statement.
• B) facing the standard of living tradeoff.
• C) making a positive statement.
• D) testing an economic model.

---

Definitions:

Elastic Demand

A situation in which the demand for a product is sensitive to price changes.

Indirect Discrimination Scheme

Policies or practices that appear neutral but disproportionately impact a specific group in a negative way.

Direct Discrimination Scheme

Practices or policies that intentionally treat individuals unfavorably because of protected characteristics like race, age, or gender.

Advance-Purchase Discounts

Reductions in price offered to customers who pay for goods or services before they are received or required.