All of the Following Are Examples of Normative Statements EXCEPT

question 67

Multiple Choice

All of the following are examples of normative statements EXCEPT:

• A)High rates of economic growth are preferable to low rates.
• B)Output per person should increase at an average annual rate of 5 percent.
• C)Low unemployment is more desirable than low inflation.
• D)Output per person typically grows more slowly than output per worker.

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Definitions:

Price-taker Industry

An industry in which individual firms have no control over the price of their product; they "take" the market price as given.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms no longer have any incentives to enter or exit the market, resulting in an optimal allocation of resources.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a good or service.

Perfectly Elastic

Describes a market situation where the quantity demanded or supplied changes infinitely with even a slight change in price, indicating extreme sensitivity.