Which of the Following Statements About Positive Economic Analysis Is

question 32

Multiple Choice

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

• A)Positive analysis uses an economic model to estimate the costs and benefits of different course of actions.
• B)There is much more 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 normative economic analysis, positive economic analysis can be tested.

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Definitions:

Perpetual LIFO

Perpetual Last-In-First-Out is an inventory cost method assuming that the last items added to inventory are the first sold, continually updating inventory and cost of goods sold values.

Ending Inventory

The overall price of items available for selling at the end of a fiscal period.

Inventory Units

Quantities of goods held by a business for the purpose of sale or production.

Purchase Discounts

Reductions in the purchase price of goods, usually provided by a supplier to the buyer for early payment or bulk buying.