Which of the Following Is an Example of a Normative

question 36

Multiple Choice

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

• A)If the money supply falls,interest rates will rise.
• B)Teenage unemployment would be lower if there were no minimum wage.
• C)The quantity of shirts sold increases as the price of shirts decreases.
• D)The federal government's total spending should be reduced.
• E)If interest rates go up,then construction activity will fall.

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Definitions:

Compensatory

Relating to compensation, this term refers to benefits or payments awarded to individuals as restitution for loss, damage, or injury suffered.

Punitive Damages

Financial restitution given to a victim that surpasses the required amount for compensating damages and serves to discipline the perpetrator.

Property Insurance Policy

An insurance policy that provides financial reimbursement to the owner or renter of a structure and its contents, in case of damage or theft.

Beneficiary

A legal term referring to an individual or entity entitled to receive benefits or assets under the terms and provisions of a will, trust, insurance policy, or other contract.