Which of the Following Is a Normative Statement

question 51

Multiple Choice

Which of the following is a normative statement?

• A) Reducing the budget deficit will also reduce the balance of trade deficit.
• B) Tariffs on imported cars result in higher prices for domestic auto consumers.
• C) A tax cut will cause higher inflation.
• D) The government should spend more to help the poor.

---

Definitions:

Distribution Of Income

The way in which total income is shared amongst the population or different groups within a society.

Pre-Tax-And-Transfer Income

The measure of a household's income before taxes are deducted and before any government transfers, such as social security or unemployment benefits, are added.

Human Development Report

An annual report published by the United Nations Development Programme that measures countries' social and economic development levels.

Measure Of Inequality

An analytical tool used to quantify the degree of economic inequality within a population, such as the Gini coefficient.