Which of the Following Statements Concerning the Distinction Between Positive

question 272

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:

Marginal Cost

The augmentation in total expenditure resulting from the manufacture of one more unit of a product or service.

Price

Price refers to the amount of money expected, required, or given in payment for something, representing the value exchange between buyer and seller in a market.

Kinked Demand

A demand curve that has a distinct bend or "kink" at a certain price level, reflecting different elasticity above and below that price.

Marginal Cost

The increase in cost resulting from the production of an extra unit of a good or service.