Which of the Following Statements Is True

question 100

Multiple Choice

Which of the following statements is true?

• A) Positive economics describes what people ought to do.
• B) Normative economics describes what people actually do.
• C) Positive economics generates objective descriptions that can be verified with data.
• D) Normative economics is free from the value judgments, tastes, and preferences of economic agents.

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Definitions:

Multivariate Regression

A statistical technique used to understand the relationship between one dependent variable and two or more independent variables.

Simple Regression

A statistical method for modeling the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Multiple Regression

A statistical technique that models the relationship between a dependent variable and two or more independent variables by fitting a linear equation to observed data.