Why Does the Dow Jones Industrial Average Have a Value

question 2

Essay

Why does the Dow Jones Industrial Average have a value over 10,000 when the 30 stocks that make up the index all have values less than $200 per share?

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Definitions:

Positive Economic Statement

A factual claim about the world that can be tested and validated, referring to what is, rather than what ought to be.

Normative

Normative relates to an ideal standard or model, often reflecting opinions about what is desirable or how things should be, especially in ethics and economics.

Gasoline

A petroleum-derived liquid mixture consisting mainly of hydrocarbons, used primarily as fuel in internal combustion engines.

Normative

Pertaining to prescriptive assessments or statements that express judgments about what ought to be, as opposed to descriptive statements which detail what is.