Which of the Following Is a Normative Economic Statement

question 96

Multiple Choice

Which of the following is a normative economic statement?

• A) The poverty rate hit a new high last year and income distribution also worsened.
• B) Health care accounts for roughly a third of total spending in the economy.
• C) The government needs to revamp the Social Security program to make it sustainable.
• D) Retail sales are expected to continue on their downward trend in the next three quarters.

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Definitions:

Just-world Phenomenon

The cognitive bias to believe that the world is inherently fair and that people get what they deserve.

Social Identity

The perception of oneself shaped by one's affiliations with various groups.

Other-race Effect

A psychological phenomenon where individuals are better at recognizing faces of their own race than those of other races.

Self-esteem

An individual's subjective evaluation of their own worth, including feelings of confidence, respect, and self-acceptance.