A Normative Economic Statement

question 248

Multiple Choice

A normative economic statement:

• A) is a model used to collect data.
• B) is a statement of fact.
• C) is a statement of what ought to be, not what is.
• D) indicates what will occur if certain assumptions are true.

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Definitions:

APS

The abbreviation for "Aggregate Planning Strategy," a process in operations management to balance production and demand over a medium-term horizon; or it could refer to "Automatic Payment System," depending on context.

Income

The financial gain earned by an individual or business, typically measured on an annual basis, coming from work, investments, or other sources.

APC

Average Propensity to Consume, which is the fraction of income that a person or economy spends rather than saving.

APS

The Average Propensity to Save, which is the proportion of total income that households plan to save rather than spend on consumption.