For Economists, Positive Statements Are

question 84

Multiple Choice

For economists, positive statements are:

• A)descriptive, making a claim about how the world is
• B)optimistic, putting the best possible interpretation on things
• C)affirmative, justifying existing economic policy
• D)prescriptive, making a claim about how the world ought to be

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Definitions:

Laspeyres Price Index

A measure of the change in the aggregate price level of a basket of goods and services over time, using the quantities purchased in the base year.

Paasche Price Index

The Paasche Price Index measures the change in the price level of a basket of goods and services between two periods, using the quantities of the current period.

Strong Axiom

A principle or rule with robust implications or requirements, though more context is needed for a specific field application.

Revealed Preference

An economic concept referring to the idea that consumers' choices, reflected in their purchasing decisions, reveal their preferences for certain goods or services over others.