Economists View Normative Statements as

question 12

Multiple Choice

Economists view normative statements as

• A)prescriptive,making a claim about how the world ought to be.
• B)descriptive,making a claim about how the world is.
• C)statements about the normal condition of the world.
• D)pessimistic,putting the worst possible interpretation on things.

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Definitions:

Cherry Industry

The market segment that deals with the cultivation, distribution, and sale of cherries.

Long-run Equilibrium

A state in which all factors of production are optimally allocated in the long term, resulting in the efficient operation of markets with no tendencies for change under constant conditions.

Average Total Cost

Average Total Cost is the total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs in the calculation.

Economic Profits

The financial gains that exceed the opportunity costs of a business's resources, considering both explicit and implicit costs.