Which of the Following Is an Example of a Normative

question 14

Multiple Choice

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

• A) The inflation rate in the United States decreased from 4 percent last year to 3 percent this year as a result of lower energy prices.
• B) The economy grew at an annual rate of 5 percent during the first quarter of this year.
• C) If two automobile companies merge, it is likely that the price of automobiles will rise.
• D) An increase in international trade benefits some workers but hurts others.
• E) The minimum wage should be increased so that low income workers can afford to keep up with the cost of living.

---

Definitions:

Legal Persons

Entities that have legal rights and obligations, including the capability to own property, enter into contracts, and sue or be sued, can be either individuals or organizations such as corporations.

Personal Jurisdiction

The legal authority of a court over the parties to a lawsuit, based on their geographic or other relevant connections to the location where the court sits.

Service of Process

The procedure by which a party to a lawsuit gives an appropriate notice of initial legal action to another party (such as a defendant), court, or administrative body, thus allowing them to respond to the proceeding.

Montana

A state located in the Western United States, known for its vast wilderness areas and Rocky Mountain landscapes.