Which of the Following Is an Example of a Normative

question 87

Multiple Choice

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

• A)The inflation rate in Australia decreased from 4 per cent last year to 3 per cent this year as a result of lower energy prices.
• B)The economy grew at an annual rate of 5 per cent during the first quarter of this year.
• C)If two automobile companies merge, it is likely that the price of automobiles will rise.
• D)An increase in international trade benefits some workers but hurts others.
• E)Australia should use more renewable energy to reduce greenhouse gas emissions.

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Definitions:

Recession

A phase of short-term economic downturn characterized by a decrease in commerce and manufacturing, typically marked by two consecutive quarters of declining gross domestic product (GDP).

Inflation

The pace at which prices for general goods and services climb, reducing the value of money to buy them.

Spreadsheets

Digital tools or applications used to organize, analyze, and store data in tables, often utilized for accounting, planning, and data analysis.

Household Budget

An estimate of an individual's or family's income and expenses over a specified period, used for managing personal finances.