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:

Gender Gap

The difference in opportunities, status, attitudes, etc., between men and women, often resulting in disparities.

Mathematical Abilities

The cognitive capacities related to understanding, manipulating, and solving mathematical concepts and problems.

Socially Influenced

Being affected or altered by the social context, including behaviors, opinions, or decisions that are impacted by others or societal norms.

Predictive Validity

The degree to which a score from a test or scale forecasts upcoming performance in a connected task or result.