Which of the Following Is the Best Example of a Normative

question 239

Multiple Choice

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

• A) A rise in gasoline prices will cause gasoline purchases to fall.
• B) The federal government should spend more on health care.
• C) Raising the minimum wage will result in greater unemployment.
• D) If more money is printed, then the economy's price level will rise.

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Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Optimal Periods

Specific times in development when the organism is particularly responsive to certain environmental stimuli or experiences.

Language Development

The process by which individuals acquire the capacity to perceive, produce, and use words to understand and communicate.

Critical

Involving objective analysis and evaluation of an issue in order to form a judgment.