When an Economist Evaluates a Positive Statement,he or She Is

question 285

Multiple Choice

When an economist evaluates a positive statement,he or she is primarily

• A) examining evidence.
• B) evaluating values as well as facts.
• C) acting as a policy adviser.
• D) concerned with making a sound decision on how the world ought to be.

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Definitions:

Implicit Lease Rate

The interest rate embedded in a lease agreement that equates the value of lease payments to the fair value of the leased asset.

Incremental Borrowing Rate

The interest rate a lessee would have to pay if, instead of leasing, they financed the purchase of an asset with a loan over a similar term.

Implicit Rate Of Interest

The interest rate embedded in a lease agreement, used to calculate the present value of lease payments and to establish the lease classification.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return or discount rate.