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

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Definitions:

Performance Measures

Quantitative and qualitative metrics used to assess the effectiveness or efficiency of operations, employees, or overall organizational performance.

Transfer Price

The price charged for goods or services transferred between departments or divisions within the same company as part of the internal sales process.

Opportunity Cost

The sacrifice of possible benefits from other options when selecting a specific one.

Standard Variable Cost

The anticipated cost of variable inputs (like labor and materials) for producing one unit of product or service under standard operating conditions.