Which of the Following Is a Normative Economic Statement

question 166

Multiple Choice

Which of the following is a normative economic statement?

• A)The price of milk is too high.
• B)The current high price of milk is the result of reduced worldwide supply.
• C)When the price of milk rises,the quantity of milk purchased falls.
• D)When the price of milk rises,the cost of milk-based products rises.

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Definitions:

Copyrights

Legal rights given to creators over their creations, granting them exclusive rights to use and distribute their work for a certain period of time.

Marginal Cost

The hike in overall cost that comes with the assembly of an extra unit of a product or service.

Elasticity

A measure in economics to show how much the quantity demanded or supplied of a good responds to a change in price or other factors.

Marginal Cost

The cost incurred by producing an additional unit of a product or service.