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:

Credential Inflation

Credential Inflation is the increasing demand for higher educational qualifications for jobs that previously required less education, devaluing the worth of basic credentials.

Stratification System

Refers to the structured ranking of individuals and groups in any society based on wealth, power, race, education, etc., leading to social inequality.

Public Funding

Financial support that comes from the government, allocated towards public projects, services, or initiatives, often through taxation.

Vouchers

Certificates or other documents that can be used as money or for obtaining a discount on goods or services, often used in educational funding.