When Economists Make Positive Statements,they Are

question 47

Multiple Choice

When economists make positive statements,they are

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

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Definitions:

Sensitivity Analysis

The study of how the variation in the output of a model can be attributed to different variations in the inputs of the model, used to predict the impact of changes in economic variables.

Earnings Before Taxes

The income a company generates before taking into account the income tax expense.

Sales Price

The amount a buyer pays to purchase a product or service.

Net Present Value

The current value of an investment's projected earnings, discounted at an appropriate interest rate, minus the initial capital cost.