Which Statement(s)reflect(s)a Normative View? I

question 284

Multiple Choice

Which statement(s) reflect(s) a normative view? I.The United States should increase the minimum wage to $10 per hour.
II.There is a federal minimum wage in the United States.
III.The federal minimum wage in the United States is less than $10 per hour.

• A)I,II,and III
• B)None is normative.
• C)I and II
• D)I

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Definitions:

Inflation Expectations

The rate at which people anticipate prices will increase in the future, which can influence current economic behavior and monetary policy.

Short-run Phillips Curve

A graphical representation showing an inverse relationship between the rate of inflation and the rate of unemployment in the short-term.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Central Bank

A nation's principal monetary authority, which regulates the money supply and interest rates in pursuit of economic objectives.