Which of the Following Is an Example of a Normative

question 86

Multiple Choice

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

• A) A cut in the tax rate will lead to an increase in consumption.
• B) Relaxation of import duties will encourage imports.
• C) An increase in subsidies to farmers will boost agricultural production.
• D) An increase in social security benefits will increase the welfare of all economic agents.

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Definitions:

Abusive Supervision

A workplace phenomenon where supervisors engage in the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact.

Employees

Individuals who are hired by an organization to perform specific duties and tasks in exchange for compensation, forming the workforce of the organization.

Stress Reaction

The physical, mental, and emotional responses triggered by perceived threats or challenges in one's environment.

Displacement

In psychology, the transfer of emotions or desires from their original object to a more acceptable substitute.