Which of the Following Is an Example of Normative Economics

question 59

Multiple Choice

Which of the following is an example of normative economics?

• A)The minimum wage has not kept pace with inflation.
• B)The minimum wage is an important tool in fighting poverty and should be increased.
• C)The minimum wage can create higher unemployment for teens and unskilled workers.
• D)A higher minimum wage is expected to increase the price of a fast-food cheeseburger.

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Definitions:

Developing Nations

Countries with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

Foreign Corrupt Practices Act

A U.S. law that prohibits American companies and their subsidiaries from bribing foreign officials to retain or obtain business.

Fines

Monetary penalties imposed as punishment for breaking laws or regulations.

Domestic Concern

Matters or businesses pertaining to the internal affairs or operations of a specific country.