Which of the Following Is True of Normative Economics

question 74

Multiple Choice

Which of the following is true of normative economics?

• A) It is an objective method of analysis that is based on facts.
• B) It prescribes policies based upon personal value judgments.
• C) It is a scienti?c approach to the study of economic events.
• D) It is based on a technical understanding of economic problems.

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Definitions:

Investment

Allocation of resources, such as capital or time, in the expectation of generating an income or profit.

Line-By-Line Method

The line-by-line method is a technique used in consolidating the financial statements of a parent company and its subsidiaries, where each item of the subsidiary is added line by line to those of the parent.

Technical Services

Services that require specialized skills or knowledge, often in the fields of engineering, IT, or other technical disciplines.

Fair Value

An accounting term that refers to the estimated price at which an asset or liability could be exchanged in an arm's length transaction between knowledgeable, willing parties.