Which of the Following Statements Belongs More Properly in the Field

question 37

Multiple Choice

Which of the following statements belongs more properly in the field of normative economics than positive economics?

• A)Technological change has reduced the cost of cell phone service.
• B)When a drought occurs, the price of vegetables tends to rise.
• C)Canadian governments should provide assistance to the auto industry.
• D)An increase in the minimum wage leads to more unemployment.
• E)The price of one Canadian dollar is $0.85 U.S.

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Definitions:

Posterior Probabilities

The probabilities assigned to outcomes or hypotheses after taking into account known data and a priori probabilities.

Prior Probabilities

Represent the probabilities of different outcomes before any evidence is considered, often used in Bayesian statistics.

Bayes' Law

A statistical theorem that describes the probability of an event, based on prior knowledge of conditions related to the event.

Posterior Probability

The probability of an event or hypothesis being true after taking into consideration new evidence or information.