Which of the Following Is a Normative Statement

question 67

Multiple Choice

Which of the following is a normative statement?

• A)Next year's inflation rate will be under 4 percent.
• B)A wheat shortage or surplus is always the result of federal government policies.
• C)Consumers will buy more gasoline over the December holiday period than they bought during the summer holiday period even if the price of gas is 10 cents a litre higher than it was during the summer.
• D)Hurricane Irma caused more damage in the United States than Hurricane Harvey.
• E)Government cuts in welfare spending impose an unfair hardship on the poor.

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Definitions:

Nonexcludable

A characteristic of a good or service that prevents the owner from effectively denying access to it to non-paying individuals or entities.

Nonrivalry

A characteristic of a good or service where its consumption by one individual does not reduce its availability to others.

Public Good

A good or service offered free of charge to every member of a society by either the government or a private entity or organization, aiming not for profit.

Nonexcludability

Refers to a situation in a market where it's impossible to exclude individuals from using a good or service, often associated with public goods.