The Difference Between Economists Speaking as Scientists or Policy Advisers

question 38

Multiple Choice

The difference between economists speaking as scientists or policy advisers boil down to the difference between

• A)assumptions and theories.
• B)true statements and false statements.
• C)specific statements and general statements.
• D)positive statements and normative statements.

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Definitions:

Present Value

A calculation that determines the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Usury Laws

Regulations governing the amount of interest that can be charged on a loan, intended to prevent lending at excessively high rates.

Nonmarket Rationing

Distribution of goods and services based on criteria other than price, such as need or merit.

Expected Rate of Return

The anticipated amount of profit or loss from an investment, considering the potential risks and rewards.