When Economists Make Normative Statements,they Are

question 35

Multiple Choice

When economists make normative statements,they are

• A)speaking as scientists.
• B)speaking as policy advisers.
• C)making claims about how the world is.
• D)revealing that they are very liberal in their views of how the world works.

Understand the role of exchange and trade in increasing societal satisfaction.

Recognize the limitations and roles of government within a market system.

Understand the concept and implications of consumer sovereignty in a market economy.

Analyze the effects of trade restrictions on a nation's economy.

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Definitions:

Cash Flows

The overall volume of cash inflows and outflows within a corporation, impacting its availability of liquid funds.

Free Cash Flow

A financial metric that measures the amount of cash generated by a company after accounting for capital expenditures.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating financial performance.

Cost of Goods Sold

Expenses directly linked to the creation of a company's sold goods, which include the costs of materials and labor.