Which of the Following Is an Example of a Normative

question 104

Multiple Choice

Which of the following is an example of a normative question?

• A) How will an increase in the inheritance tax affect tax revenues?
• B) What fraction of an income tax cut will be spent on imported goods?
• C) Should Florida implement a state income tax to reduce its deficit?
• D) How will an increase in unemployment benefits affect the unemployment rate?

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Definitions:

Minimum Distribution

The required minimum amount that must be withdrawn annually from retirement accounts after reaching a certain age.

Plan Balance

The total current value of an individual's account in a retirement plan, reflecting contributions, investment gains or losses, and withdrawals made over time.

Simplified Employee Pension

A Simplified Employee Pension (SEP) is a retirement plan that allows employers to make contributions to the retirement accounts of their employees, simplifying the process for small businesses.

Annual Contribution

The amount of money an individual contributes to a retirement, investment, or savings account within a single fiscal year.