How Do Economists View Normative Statements

question 100

Multiple Choice

How do economists view normative statements?

• A)descriptive, making a claim about how the world is
• B)as statements about the normal condition of the world
• C)prescriptive, making a claim about how the world ought to be
• D)as statements that establish production goals for the economy

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Definitions:

Total Variable Cost

The sum of all costs that vary with the level of output in the short run.

Average Fixed Costs

The fixed costs of production (expenses that do not change with the level of output) divided by the quantity of output produced.

Total Fixed Costs

The sum of all costs that do not change with the level of output produced by a business, such as rent, salaries, and insurance.

The Barber Shop

This term commonly refers to a place where men can get their hair cut and sometimes other grooming services, serving as a social hub in many communities.