Which of the Following Is an Example of a Normative

question 39

Multiple Choice

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

• A)Incomes increase when national production increases.
• B)Women should earn the same income as men.
• C)When the price of a good rises,people will buy more of it.
• D)The more time you spend studying,the higher your economics test scores will be.
• E)The more time you spend studying for chemistry,the higher your economics test score will be.

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Definitions:

Economic Profit

The difference between a firm's total revenue and all costs, including both explicit and implicit costs.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, which decreases as output increases.

Total Product

The total quantity of output produced by a firm during a given time period with a given amount of inputs.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied by producers.