Which of the Following Is NOT Normative Economic Statement

question 70

Multiple Choice

Which of the following is NOT normative economic statement?

• A) The minimum wage should be eliminated so unemployment can be reduced.
• B) Increases in the minimum wage cause increases in unemployment.
• C) The inflation rate should fall to increase individuals' well being.
• D) Taxes on cigarettes should be increased to reduce smoking.

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Definitions:

Purchasing Power Analysis

A technique used to determine the amount of goods or services that can be purchased with a unit of currency.

Retail or Professional Service

Refers to businesses that sell goods directly to consumers or provide specialized professional services, respectively.

Load-Distance Analysis

A mathematical technique used in facility layout planning to minimize the weighted distances between departments or areas within a facility.

Distribution Centre

A facility that stores products for relatively short periods of time and redistributes them to retailers or directly to customers.