Normative Economic Analysis Tends to

question 147

Multiple Choice

Normative economic analysis tends to

• A) generate testable hypotheses.
• B) include the way someone thinks things should be or ought to be.
• C) involve descriptive statements.
• D) lead to empirical testing of data.

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Definitions:

Survey Of Consumer Finances

The Survey of Consumer Finances is a detailed survey conducted by the Federal Reserve to gather information about household finances in the United States, including income, saving, debt, and net worth.

SCF

Statement of Cash Flows, a financial report that details the inflows and outflows of cash for a business over a specified period.

Parameter

A characteristic or constant factor that can be measured and used to describe a system or set the conditions of an experiment.

Statistic

A numerical value that represents a summary measure of a sample, used to estimate parameters of the population.