Which of the Following Statements Concerning the Distinction Between Positive

question 41

Multiple Choice

Which of the following statements concerning the distinction between positive and normative economics is TRUE?

• A) Positive statements are concerned with what is, while normative statements are concerned with what someone thinks should be.
• B) Positive statements are concerned with what people think, while normative statements are concerned with what people do.
• C) Positive statements are true while normative statements are false.
• D) Positive statements are concerned with what is while normative statements are concerned with what will be.

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Definitions:

Third Party

An individual or entity that is not a direct participant or primary party involved in a transaction or legal matter.

Legal Capacity

The ability of an individual to understand and appreciate the consequences of their actions for the purpose of entering legally binding contracts or making other legal decisions.

Ratifies

To officially approve or confirm an agreement or contract, making it valid and legally binding.

Apparent Authority

A type of authority perceived by a third party that an agent seems to have in relation to the principal, regardless of whether such authority has been actually granted.