Which of the Following Is a Normative Statement

question 147

Multiple Choice

Which of the following is a normative statement?

• A) The deduction for state taxes cost the federal government $100 billion per year.
• B) Taxpayers in North Carolina pay state taxes which are above the national average.
• C) Twenty-two states use a lottery to raise state taxes.
• D) Congress is considering the president's tax plan to increase taxes which is a fair plan.

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Definitions:

Private Market

A part of the financial market in which financial instruments and assets are traded that are not available on the public stock exchanges.

Marginal Social Benefit

The additional benefit received by society from the production or consumption of one more unit of a good or service.

Marginal Cost

The expense incurred from manufacturing an extra unit of a product or service.

Total Social Benefit

The total benefit to society from producing or consuming a good, including both private benefits and any external benefits.