Which of the Following Is a Normative Economic Statement

question 2

Multiple Choice

Which of the following is a normative economic statement?

• A) Income tax revenues decreased during the recession.
• B) Despite government stimulus spending, the unemployment rate remained above 9% in 2010.
• C) When the price of gasoline rises, transportation costs rise.
• D) The government should decrease spending on foreign aid to lower the federal deficit.

---

Definitions:

Implicit Memory

Unconscious memory: subjects can demonstrate knowledge, such as a skill, conditioned response, or recall of events on prompting but cannot explicitly retrieve the information.

Verbal Tasks

Cognitive tasks involving language, such as speaking, reading, and writing, used to assess linguistic skills and brain function.

Motor Tasks

Activities that require the brain to plan and execute movements, often involving coordination and strength.