You Know an Economist Has Crossed the Line from Scientist

question 36

Multiple Choice

You know an economist has crossed the line from scientist to policy adviser when he or she

• A)claims that the problem at hand is widely misunderstood by non-economists.
• B)talks about the evidence.
• C)makes normative statements.
• D)makes a claim about how the world is.

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Definitions:

FASB Conceptual Framework

A foundational set of objectives and concepts that guide the Financial Accounting Standards Board in developing accounting standards.

GAAP

Generally Accepted Accounting Principles; a collection of commonly followed accounting rules and standards for financial reporting in the United States.

Financial Reporting

Financial reporting involves the disclosure of financial information to various stakeholders about the company's performance over a period.

Management's Responsibility

The obligation of an organization's management to ensure accurate and complete financial reporting, adherence to laws and regulations, and effective operation of the entity.