Which of the Following Is a Normative Statement in Economics

question 9

Multiple Choice

Which of the following is a normative statement in economics?

• A) A higher price reduces the quantity demanded.
• B) A higher price reduces the quantity supplied.
• C) The government should spend more on healthcare.
• D) Increased spending by the government can increase the price level.

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Definitions:

Generalization

A broad statement or conclusion derived from specific instances or examples, applying to a wider range of situations.

Specific Conclusion

A definitive end or resolution that directly addresses the particular issue or question at hand.

Circular Reasoning

A logical fallacy where the conclusion is supported by premises that assume the conclusion's truth, creating a circle in reasoning.

Logical Fallacy

An error in reasoning that renders an argument invalid or undermines the argument's logical structure.