When Do You Know an Economist Has Crossed the Line

question 25

Multiple Choice

When do you know an economist has crossed the line from scientist to policy adviser?

• A) when he explains just the facts
• B) when he makes positive statements
• C) when he makes normative statements
• D) when he cannot reach a conclusion

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be paid or settled in the future.

Ending Equity

The value of an owner's interest in a company at the end of an accounting period, calculated as total assets minus total liabilities.

Net Income

Refers to the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Dividends

Dividends are the portion of profit a company decides to distribute to its shareholders, often on a regular basis.