One Way to Characterize the Difference Between Positive Statements and Normative

question 50

Multiple Choice

One way to characterize the difference between positive statements and normative statements is as follows:

• A)Positive statements tend to reflect optimism about the economy and its future,whereas normative statements tend to reflect pessimism about the economy and its future.
• B)Positive statements offer descriptions of the way things are,whereas normative statements offer opinions on how things ought to be.
• C)Positive statements involve advice on policy matters,whereas normative statements are supported by scientific theory and observation.
• D)Economists outside of government tend to make normative statements,whereas government-employed economists tend to make positive statements.

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Definitions:

Dividend Payout Ratio

A financial metric indicating the percentage of a company's earnings paid out to shareholders in the form of dividends.

Debt-Equity Ratio

Calculating a corporation's financial leverage involves dividing total liabilities by the equity of shareholders.

Net Fixed Assets

Net fixed assets refer to the total value of a company's property, plant, and equipment minus depreciation, representing the actual value of company's long-term assets being used in operations.

Dividend Payout Ratio

The percentage of a company's earnings that is distributed to shareholders in the form of dividends.