The Difference Between Positive Economic Statements and Normative Economic Statements

question 88

Multiple Choice

The difference between positive economic statements and normative economic statements is that:

• A)positive statements are based on opinion while normative statements are always true.
• B)positive statements are based on opinion while normative statements are based on fact.
• C)positive statements are true and normative statements are often false.
• D)positive statements are often false and normative statements are true.
• E)positive statements are based on fact while normative statements are based on opinion.

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Definitions:

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Balance of Loan

The remaining amount owed on a debt after periodic repayments have been made.

Financing

The process of providing funds for business activities, making purchases, or investing, through various means such as loans, credit, or investment.