Which One of the Following Is a Normative Economic Statement

question 45

Multiple Choice

Which one of the following is a normative economic statement?

• A)The unemployment rate fell for the fourth straight month, reflecting the effects from stronger economic growth in the second quarter.
• B)The worsening balance of trade must be corrected if this nation is to remain competitive in the world economy.
• C)Consumer prices are rising at a faster rate than in past months, indicating a renewal of inflationary pressures on the economy.
• D)To help balance the Federal budget, Congress increased the tax on gasoline to its highest level in the past 10 years.

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Definitions:

Product Differentiation

the process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Peak Efficiency

The highest level of performance or productivity that a system, device, or organization can achieve under ideal circumstances.

Price Discrimination

A pricing strategy where different prices are charged for the same product or service in different markets or to different segments of consumers based on demand, market conditions, or other factors.

Disguised Subsidy

A form of financial support that is not explicitly recognized as a subsidy, often embedded within other transactions or policies that provide an advantage to certain firms or sectors.