Which of the Following Is an Example of a Normative

question 133

Multiple Choice

Which of the following is an example of a normative question?

• A) How will an increase in the price of gasoline affect taxi drivers?
• B) What fraction of an income-tax cut will be spent on consumer goods?
• C) Should the government provide free prescription drugs to senior citizens?
• D) How will an increase in the minimum wage affect teenaged workers?

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Definitions:

T-account

A simplified accounting tool used to understand the effects of transactions on individual accounts, visually structured as a 'T'.