Give One Example of a Positive Economic Statement and One

question 40

Essay

Give one example of a positive economic statement and one example of a normative economic statement.

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Definitions:

Fair Value

The predicted cost at which a property can be purchased or sold in a present deal between agreeable participants.

Equity Method

An accounting technique used to record investments in other companies, reflecting the owning company's proportionate share of the investee's profits.

Unrealized Gain Or Loss

Changes in the fair value of equity or debt securities for a period.

Dividend Yield

The ratio of a company's annual dividends paid to its share price, expressed as a percentage.