Which Statement Is an Example of a Normative Question

question 128

Multiple Choice

Which statement is an example of a normative question?

• A) How do interest rates influence employment?
• B) How should a society achieve full employment?
• C) How do unemployment rates differ among nations?
• D) What are the long-term effects of unemployment?

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Definitions:

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Market Price

The current price at which a good or service can be bought or sold in a market, determined by the forces of supply and demand.

Sacks

Bags made of various materials, typically used for storing or transporting items.

Profit Maximized

The point at which a firm's profit is at its highest because marginal cost equals marginal revenue.