Answer:
Positive statement
Normative statement
Positive statement
Normative statement
Explanation:
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, -In the past decade, U.S. companies have outsourced millions of jobs overseas - is a statement that can be verified with data
Normative economics is based value judgements, opinions and perspectives. For example, -Companies that outsource jobs are acting immorally - is subject to opinion. Some would agree and some would not
Answer:
Present Value= $437,500
Explanation:
Giving the following information:
You and your heirs will receive $35,000 per year forever, with the first payment received at the end of the first year. The appropriate discount rate is 8%.
We need to find the present value of a perpetual annuity. To do that, we will use the following formula:
PV= Cf/i
Cf= cash flow= 35,000
i= 0.08
PV= 35,000/0.08= $437,500
Answer:
Private ownership of business
Explanation:
A mixed economy combines elements of both a socialist and a free market economy. The government participates in a mixed economy as a regulator to ensure fairness in the market place, and as a provider of social goods. A mixed economy creates the freedom to establish a private business of an investor's preference. A Buyer has the freedom to purchase products of their choice.
An economy that is transitioning from socialist to mixed economy will likely experience the development of private businesses. In a socialist economy, only the government is allowed to own the factors of production. It produces all the goods and services in the country. As a mixed economy allows private ownership of businesses, the people of Amerensia will be free to establish and run their businesses.