Which Statement Is Normative

question 226

Multiple Choice

Which statement is normative?

• A)The rate of unemployment is 9%.
• B)A high rate of economic growth creates jobs.
• C)The federal government spends half of its budget on national defense.
• D)Everyone in the United States deserves to be covered by national health insurance.

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Definitions:

Market Demand

This refers to the total demand for a product or service by all consumers in a particular market.

Competitive Firm

A company that operates in a market where it must compete with other firms for customers, characterized by the inability to control market prices.

Higher Profits

Increased earnings resulting from a rise in revenue, a decrease in costs, or both.

Resource Cost

The total cost associated with the utilization of resources such as labor, capital, and materials in the production of goods and services.