You Know an Economist Has Crossed the Line from Scientist

question 245

Multiple Choice

You know an economist has crossed the line from scientist to policy adviser when he or she

• A)claims that the problem at hand is widely misunderstood by non-economists.
• B)talks about the evidence.
• C)makes normative statements.
• D)makes positive statements.

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Definitions:

Adjustment

A change made to the book value of an asset or liability to accurately reflect its value.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.

FIFO Inventory Reporting

An approach to reporting inventory where the oldest stock is recorded as sold first; reiterates the First-In, First-Out method in financial statements.

Consistent Application

The principle that accounting rules and methods should be applied the same way in each accounting period to ensure comparability of financial statements.