Which of the Following Is a Normative Statement

question 145

Multiple Choice

Which of the following is a normative statement?

• A) Studying more hours leads to an increase in your GPA.
• B) An increase in tax rates means people work fewer hours.
• C) Taking extra vitamin C prevents catching a cold.
• D) States should require all motorcycle riders to wear helmets to reduce the number of riders killed.

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Definitions:

Trade Balance

The difference between the monetary value of a nation's exports and imports over a certain timeframe.

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Joseph Stiglitz

An American economist and professor known for his work on income distribution, risk, and information economics, and a recipient of the Nobel Memorial Prize in Economic Sciences.

NAFTA Treaty

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries and facilitate the free flow of goods and services.