Answer:
e. A positive economic statement can be proved; a normative statement cannot.
Explanation:
A positive economic statement are objective statement that can be tested, amended or rejected by referring to available evidence.
this means in essence that a positive economic statement is prone to improvement when proven. it is not rigid
a normative statement is subjective that cannot be changed. it is rigid.
Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.
Answer:
Explanation:
In this question, we have to find out the net profit and the net cash flow which is shown below:
Net profit = Sales - cost of goods sold
= $760,000 - $300,000
= $460,000
And, the net cash flow would be
= Cash collections - Cost of goods sold
= $6,90,000 - 3,00,000
= $3,90,000
Hence, the cash flow statement is more beneficial for the company as the income statement does not state about the collection amount which results in the absence of the shareholder contribution wealth.
