Which of the Following Is a Normative Statement

question 249

Multiple Choice

Which of the following is a normative statement?

• A)The rate of unemployment is 9%.
• B)The price of gasoline should be less than $4 per gallon.
• C)The federal government spends half of its budget on national defense.
• D)Millions of Americans lack health insurance.

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total income earned, representing the percentage of income paid in taxes.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes according to federal, state, or local law.

Lump-Sum Tax

A tax that is a fixed amount, regardless of the tax base's changes in size or value.

Benefits Principle

The concept that those who benefit from government services should pay taxes in proportion to the amount of benefits they receive.