Which of the Following Is an Example of a Normative

question 36

Multiple Choice

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

• A)A higher price for a good causes people to want to buy less of that good.
• B)A lower price for a good causes people to want to buy more of that good.
• C)To make the good available to more people, a lower price should be set.
• D)If you decrease the amount of sugar in soda drinks, sales to children will decrease.

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Definitions:

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Public Good

A good that is non-excludable and non-rivalrous, meaning its consumption by one individual does not reduce its availability to others and people cannot be effectively excluded from using it.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used simultaneously by more than one person without reducing its availability to others.

Flat Road Tax

A fixed-rate tax imposed on vehicle owners, irrespective of the vehicle's value, emissions, or usage levels.