Positive Statements

question 38

Multiple Choice

Positive statements

• A)are seldom employed in social sciences like economics.
• B)have been verified by appeal to factual evidence.
• C)have no place in economics because economics deals only with value judgments.
• D)are falsifiable in principle by appeal to factual evidence.
• E)form the basis of all normative arguments.

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Definitions:

Marginal Costs

The cost added by producing one additional unit of a product or service.

Diseconomies of Scale

The phenomenon where production costs per unit increase as the scale of operation expands.

Inputs

Resources used in the production process, including labor, capital, materials, and energy, to create output or goods and services.

Output

The amount of goods or services produced by a business, sector, or economy over a specific period.