Which of the Following Statements Concerning the Distinction Between Positive

question 41

Multiple Choice

Which of the following statements concerning the distinction between positive and normative economics is TRUE?

• A) Positive statements are concerned with what is, while normative statements are concerned with what someone thinks should be.
• B) Positive statements are concerned with what people think, while normative statements are concerned with what people do.
• C) Positive statements are true while normative statements are false.
• D) Positive statements are concerned with what is while normative statements are concerned with what will be.

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Definitions:

Interest Earn

The income received from lending money or depositing funds in interest-bearing accounts.

Compounded Monthly

This refers to the process of calculating interest on an initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit, on a monthly basis.

Present Value

The present value of a future amount of money or sequence of cash flows when discounted at a certain rate of return.

Annual Investment

The total sum of money invested in a particular option or portfolio in a year.