"The Standard of Living Is Too Low for Many Individuals

question 1

Multiple Choice

"The standard of living is too low for many individuals in the United States. The government should implement policies designed to achieve a more equal distribution of income." The preceding statements are

• A) positive economic statements based on cause and effect.
• B) normative economic statements based on value judgments.
• C) based on the fallacy of composition argument.
• D) an empirically validated economic principle.

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Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and falls when consumer income decreases, opposite to inferior goods.

Inferior Goods

Goods whose demand decreases as the income of consumers increases, in contrast to normal goods.

Income

Income generated regularly from employment or investments.

Soda

A carbonated soft drink that is flavored and sweetened, often consumed as a beverage.