Which of the Following Statements Belongs More Properly in the Field

question 4

Multiple Choice

Which of the following statements belongs more properly in the field of normative economics than positive economics?

• A)An increase in the minimum wage leads to more unemployment.
• B)The price of one Canadian dollar is $0.85 U.S.
• C)When a drought occurs,the price of vegetables tends to rise.
• D)Canadian governments should provide assistance to the auto industry.
• E)Technological change has reduced the cost of cell phone service.

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Definitions:

Pendleton Act

A federal law enacted in 1883 that established that government jobs should be awarded based on merit rather than political affiliation, significantly reforming the civil service system in the United States.

Independent Executive Agencies

Agencies of the federal government that are not part of a cabinet department but report directly to the president, often tasked with more specific functions in administration, such as NASA or the EPA.

Social Security Administration

A U.S. government agency that administers social programs covering disability, retirement, and survivors' benefits.

Independent Regulatory Agency

A federal organization that creates and enforces rules in its specific sphere of influence, independent of executive control.