Which of the Following Is an Example of a Normative

question 118

Multiple Choice

Which of the following is an example of a normative question?

• A) How will an increase in the minimum wage affect teenaged workers?
• B) How will an increase in the price of gasoline affect taxi drivers?
• C) Should the government provide free prescription drugs to senior citizens?
• D) What fraction of an income- tax cut will be spent on consumer goods?

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Definitions:

Aggregate Economic Rent

The total earnings that factors of production receive over and above their opportunity cost, representing the extra income derived from resource ownership.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change on an outcome.

Surplus Payments

Payments made above the market price, often by a government to producers, to encourage production or as a form of subsidy.

Economists

Professionals who study and apply theories and concepts related to economies, analyzing trends and advising on economic policy.