A Normative Economic Statement Such as "The Minimum Wage Should

question 99

Multiple Choice

A normative economic statement such as "The minimum wage should be abolished"

• A) would likely be made by an economist acting as a scientist.
• B) would require values and data in order to be evaluated.
• C) would require data but not values in order to be evaluated.
• D) could not be evaluated by economists acting as policy advisers.

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Definitions:

Population Parameter

A population parameter is a numerical value that characterizes a certain aspect of a population, such as its mean or variance.

Expected Value

The long-term average value of a random variable, representing its mean outcome over an infinite number of trials.

Point Estimate

A single value that serves as the best guess or most likely value for a population parameter based on sample data.

Population Parameter

A numerical value that describes a characteristic of a population, such as mean, standard deviation, proportion, etc., usually estimated through samples.