Which of the Following Is a Normative Economic Statement

question 5

Multiple Choice

Which of the following is a normative economic statement?

• A) Tests should always be hard to ensure that students are challenged.
• B) Quantity demanded for steak will fall if the price of steak rises.
• C) Hot dogs and hot dog buns are generally complementary goods.
• D) Each of these three statements uses normative economics.

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Definitions:

Transactional Leadership

A leadership style focused on the exchange process between leader and follower, where rewards or punishments are contingent upon performance.

Self-interest

Acting in a way that is beneficial to oneself, often guiding individual motivations and actions.

Benefits

Advantages or positive outcomes that accrue from a particular course of action or policy.

Transformational Leadership

A style of leadership where a leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of the group.