Which If the Following Is a Normative Statement

question 4

Multiple Choice

Which if the following is a normative statement?

• A)The extent of income inequality in the United States is unjust.
• B)An increase in the demand for gasoline will lead to an increase in its price.
• C)The American Recovery and Reinvestment Act has created hundreds of thousands of jobs.
• D)The current unemployment rate is 8.5%
• E)Inflation harms individuals living on fixed incomes.

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Definitions:

Efficient Allocation

The process of optimizing the distribution of resources across various activities or investments to achieve the highest possible return or efficiency.

Politically Vulnerable

Refers to individuals or groups that are more likely to suffer from political instability, policy changes, or political decisions due to their lack of power, influence, or resources.

Profitable

A financial state or condition of generating revenue that exceeds the costs and expenses associated with operating.

Efficient Markets Hypothesis

A theory suggesting that all known information is already reflected in stock prices, meaning that stocks always trade at their fair value.