Which of the Following Is the Best Example of a Normative

question 41

Multiple Choice

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

• A)The unemployment rate for women has been two times lower the overall rate.
• B)Increase in competition in the car manufacturing industry will result in price reduction for cars.
• C)Monopoly makes a decision based on market prices.
• D)A stronger regulation should be applied to polluting companies.

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Definitions:

Financing Charges

The costs associated with borrowing money, including interest, service charges, and any other fees designated by the lender.

List Price

The manufacturer's suggested retail price for a product, before any discounts or allowances.

Small Changes

Minor modifications or adjustments made to processes, products, or behaviors, often with the intention of improving efficiency, quality, or outcomes.

Company Profit

The financial surplus generated by a company after all operating expenses, including production costs, taxes, and overheads, have been deducted from total revenue.