Which of the Following Statements About Economic Analysis Is True

question 22

Multiple Choice

Which of the following statements about economic analysis is true?

• A) Unlike positive economic analysis, normative economic analysis can be tested.
• B) Neither positive nor normative analysis can be tested.
• C) Positive economic analysis is concerned with "what is," whereas normative economic analysis is concerned with "what ought to be."
• D) Economics is primarily about normative analysis, which measures the costs and benefits of different courses of action.

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Definitions:

Company Car

A vehicle provided by an employer for the business and sometimes personal use of an employee.

Engine

A machine designed to convert energy into useful mechanical motion.

Factory

A building or complex where goods are manufactured or assembled primarily by machines and workers.

Land

An asset representing real estate property, excluding buildings or structures, used in accounting as a long-term asset.