Which of the Following Is an Example of a Normative,as

question 33

Multiple Choice

Which of the following is an example of a normative,as opposed to positive,statement?

• A)If the price of a product decreases,people's willingness to buy that product will increase.
• B)Reducing tax rates on the wealthy would benefit the nation.
• C)If the national saving rate were to increase,so would the rate of economic growth.
• D)The elimination of trade restrictions would increase an economy's standard of living.

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Definitions:

Tax Return

A document filed with a state or federal government detailing income earned and taxes owed for the year.

Self-Employment Taxes

Taxes that cover the Social Security and Medicare contributions for individuals who work for themselves.

AGI Deduction

A deduction from gross income to calculate Adjusted Gross Income (AGI), incorporating specific deductions like tuition fees or student loan interest.

Qualified Moving Expenses

Qualified Moving Expenses are those costs that are deductible when an individual relocates for employment reasons and meets certain distance and time tests defined by the IRS.