How Do Economists Consider Normative Statements

question 109

Multiple Choice

How do economists consider normative statements?

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

Learn about code translation processes including the role of compilers and interpreters.

Acquire knowledge on the use and creation of visual diagrams like flowcharts.

Understand the process of testing and debugging in software development.

Familiarize with programming languages and their generations, as well as specific terminologies and their practical applications.

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Definitions:

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable overhead) in product costs, excluding fixed overhead.

Net Operating Income

Profit generated from a company’s core business operations, excluding deductions of interest and taxes.

Absorption Costing

This accounting practice involves the comprehensive addition of manufacturing costs—direct materials, direct labor, and both variable and fixed overheads—to the price of a product.

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of indirect production expenses that remain constant regardless of the volume of products manufactured, like equipment depreciation.