What Type of Questions Cannot Be Answered with Theory or Facts

question 5

Multiple Choice

What type of questions cannot be answered with theory or facts alone?

• A)Normative questions.
• B)Positive questions.
• C)Factual questions.
• D)Empirical questions.
• E)Econometric questions.

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Definitions:

Returns To Scale

An economic concept describing how output changes in response to a proportional change in all inputs; indicating constant, increasing, or decreasing returns to scale.

Production Function

A mathematical equation that describes the maximum amount of output that can be obtained from a given set of inputs.

Output

The amount of goods or services produced by a business, industry, or economy in a given period.

Production Isoquants

Curves that represent different combinations of inputs that produce the same level of output, illustrating the trade-offs in production processes.