Which of the Following Statements Belongs More Properly in the Field

question 37

Multiple Choice

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

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

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Definitions:

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, often measured by increases in per capita income and quality of life.

Reconstruction

The period following the Civil War (1865-1877) during which the United States attempted to address the issues arising from the readmission to the Union of the 11 states that had seceded.

Northern Investors

Businesspersons or companies from the northern United States who invested capital, especially in the development of the southern states and various industries.

Plessy V. Ferguson

A landmark 1896 U.S. Supreme Court decision that upheld the constitutionality of racial segregation under the "separate but equal" doctrine.