Which of the Following Is a Normative Statement

question 98

Multiple Choice

Which of the following is a normative statement?

• A) Flood victims should pay for their own rebuilding.
• B) When the price of kiwi fruit increases, fewer people eat kiwi fruit.
• C) An increase in the supply of computers has caused computer prices to fall.
• D) Recessions lead to increases in the unemployment rate.
• E) Hurricanes strike mainly Florida and North Carolina.

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Definitions:

Average Variable Cost

The total variable costs of production divided by the quantity of output produced.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Average Fixed Cost

The fixed costs of production (costs that do not vary with output) divided by the quantity of output produced.

Economic Profit

The disparity between the aggregate income and the sum of all expenses, encompassing both direct and indirect costs.