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.

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Definitions:

Close Substitutes

Goods or services that can easily replace each other in consumption, offering consumers nearly identical satisfaction.

Natural Monopoly

A market situation where a single firm can supply a good or service to an entire market at a lower cost than could multiple firms.

Minimum Efficient Scale

The smallest scale of production at which long-term average costs are minimized, reflecting the point at which economies of scale are fully exploited.

Exclusive Legal Right

An exclusive legal right is a privilege granted by law to an individual or entity to engage in a particular activity or to use a particular property, which is protected against infringement or unauthorized use by others.