When Economists Make

question 37

Multiple Choice

When economists make

• A)positive statements,they are speaking not as policy advisers but as scientists.
• B)positive statements,they are speaking not as scientists but as forecasters.
• C)normative statements,they are speaking not as policy advisers but as scientists.
• D)normative statements,they are speaking not as policy advisers but as model-builders.

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Definitions:

Inventory Period

The average time it takes for a company to turn its inventory into sales, reflecting the efficiency of its inventory management.

Cost of Goods Sold

The costs directly connected to the manufacture of goods a firm sells, comprising materials and labor.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Cost of Goods Sold

The direct expenses involved in producing the products a company sells, which cover both materials and labor.