Which of the Following Is the Best Example of a Normative

question 239

Multiple Choice

Which of the following is the best example of a normative economic statement?

• A) A rise in gasoline prices will cause gasoline purchases to fall.
• B) The federal government should spend more on health care.
• C) Raising the minimum wage will result in greater unemployment.
• D) If more money is printed, then the economy's price level will rise.

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Definitions:

Adopted

Refers to formally choosing or accepting something, such as a child into a family or policies by an organization.

States

Politically organized territories under a central government, recognized as such in international law, possessing sovereignty and internal governance.

Signatories

Parties that have signed a document, often a contract or agreement, indicating their acceptance of its terms.

Wills

A legal document by which a person expresses their wishes as to how their property is to be distributed at death and names one or more persons to manage the estate until its final distribution.