Which of the Following Statements Is a Normative as Opposed

question 296

Multiple Choice

Which of the following statements is a normative as opposed to a positive economic statement?

• A)Consumer spending generates more jobs.
• B)If the price of gasoline goes up, people buy less.
• C)Labor unions should be allowed to organize in every industry.
• D)Government intervention in markets is common in many countries.

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Definitions:

Poisson Model

A statistical model used to predict the count of events that happen independently and with a known constant mean rate.

Exponential Distribution

A probability distribution used to model time until an event occurs, assuming events happen independently at a constant average rate.

Probability

The measure of the likelihood that an event will occur, represented as a number between 0 and 1.

Exponentially Distributed

Pertains to a type of statistical distribution that describes the time between events in a process where events occur continuously and independently at a constant average rate.