Which of the Following Statements About Positive Economic Analysis Is

question 111

Multiple Choice

Which of the following statements about positive economic analysis is true?

• A)Positive analysis uses an economic model to estimate the costs and benefits of different course of actions.
• B)There is much less disagreement among economists over normative economic analysis than over positive economic analysis.
• C)There is much more disagreement among economists over positive economic analysis than over normative economic analysis.
• D)Unlike positive economic analysis,normative economic analysis can be tested.

---

Definitions:

MRP Schedule

An MRP (Marginal Revenue Product) schedule outlines how a change in the quantity of input affects the revenue from the sale of additional output.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned from work.

Legal Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers are legally allowed to pay their workers.

Equilibrium Wage Rate

The wage rate at which the quantity of labor demanded equals the quantity of labor supplied.