Which of the Following Is an Example of a Normative

question 135

Multiple Choice

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

• A) The unemployment rate is six percent.
• B) There should be no unemployment in an advanced industrial society.
• C) Higher prices cause consumers to buy less.
• D) Equilibrium price implies that quantity demanded equals quantity supplied.

---

Definitions:

Equilibrium Payoff

In game theory, the reward or outcome each player expects to receive when all players choose strategies that lead to a stable state where no player can benefit by changing their strategy alone.

Advertising Strategy

An advertising strategy is a plan designed to reach and persuade potential customers to buy a product or service or take any action desired by the advertiser.

Nash Equilibrium

A concept in game theory where players reach an outcome from which no player can benefit by unilaterally changing their strategy.

Cooperative Strategy

A collaborative approach undertaken by businesses or organizations to achieve mutual benefits or objectives through sharing resources, capabilities, or markets.