Positive Economics Question, "What Ought to Be?" Normative Economics Predicts

question 4

True/False

Positive economics question, "What ought to be?" Normative economics predicts the consequences of alternative actions, answering the questions, "What is?" or "What will be?"

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Definitions:

Consumer Surplus

The discrepancy between consumer willingness to pay a total amount for a product or service and the amount they really do pay.

Consumer Surplus

The difference in the total amount consumers are predisposed and financially prepared to pay for a good or service versus their actual expenses.

Normal Good

A good for which demand increases as consumer income rises, and decreases when consumer income falls, all other factors being constant.

Decrease in Income

A reduction in the amount of money received by an individual or entity, which can affect consumption and saving behaviors.