Which of the Following Is a Normative Economic Statement

question 99

Multiple Choice

Which of the following is a normative economic statement?

• A) If the government increases spending, unemployment will fall.
• B) The government should increase spending during times of economic recession.
• C) If banks create more money, unemployment will decrease.
• D) If the price of gasoline rises, car pooling will increase.

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Definitions:

Buyer Signs

Acts of formal agreement by a purchaser to terms or documents, such as contracts or purchase orders.

F.O.B. Shipping Point

F.O.B. shipping point is a term used in shipping agreements indicating that the buyer is responsible for the goods once the seller ships them, and must pay the shipping costs.

Freight

The charge paid for the transportation of goods, typically by sea, air, or land.

Title Passes

A legal term referring to the point at which the ownership of property, or title, is transferred from seller to buyer under the terms of a contract.