Which of the Following Is an Example of a Normative,as

question 19

Multiple Choice

Which of the following is an example of a normative,as opposed to positive,statement?

• A)The growth rate of the economy last year was higher than any other year in the last decade.
• B)The federal government reduced spending in the last quarter of the fiscal year.
• C)The Federal Reserve Bank adjusted interest rates in response to the lower-than-expected growth rate of the economy.
• D)The federal government should decrease unemployment benefits to stimulate the economy out of the recession.

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service.

Total Fixed Cost

The total of all expenses that do not vary with the amount of production or output.

Average Total Cost

The cost per unit of output, calculated by dividing the total production cost by the quantity of units produced.

Basketballs

Inflated balls used in the game of basketball, designed according to specific regulations in terms of size and weight.