Which of the Following Is a Normative Economic Statement

question 35

Multiple Choice

Which of the following is a normative economic statement?

• A) The unemployment rate for the United States is currently 5.4 percent.
• B) The inflation rate in the United States is too high.
• C) An increase in the price of a good will reduce the amount purchased.
• D) Higher profits in an industry will attract more entrepreneurs into the industry.

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Definitions:

Property Rights

Legal rights to possess, use, and dispose of assets including real property (land and buildings) and intellectual property.

Public Policy

Government actions, laws, and regulations that reflect the attitudes and rules for the public implemented by different levels of government.

Environmental Concerns

Issues related to the protection of the natural environment due to impacts from human activity, often requiring policy and individual actions to address.

Pollution

The presence or introduction into the environment of a substance or thing that has harmful or poisonous effects.