Which of the Following Is an Example of a Normative

question 43

Multiple Choice

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

• A) An increase in government expenditure will lead to an increase in well-being.
• B) An increase in the money supply will lead to an increase in the inflation rate.
• C) An increase in income is accompanied by an increase in savings.
• D) An increase in income is accompanied by an increase in consumption.

Identify the characteristics and outcomes of long-run equilibrium in monopolistic competition, including the zero economic profit condition.

Explain the concept of excess capacity in monopolistically competitive markets.

Describe the impact of changes in market demand on prices, output, and profits in the short and long run.

Understand the relationship between price, average total cost, and marginal cost in determining a firm’s economic profits or losses.

---

Definitions:

Behavioral Problems

Refers to actions or behaviors that are disruptive or inappropriate compared to the expected norms for a person's age and culture.

Pays Attention

Refers to the act of focusing cognitive resources on a specific stimulus or task, often discussed in the context of learning and perception.

Receptive Language Disorder

A condition characterized by difficulties in understanding or processing language that is heard or read.

Developmental Coordination Disorder

Neurodevelopmental disorder characterized by marked impairment in the development and performance of coordinated motor activities.