Normative Economic Statements

question 377

Multiple Choice

Normative economic statements

• A) describe what ought to be.
• B) describe what is rather than what ought to be.
• C) describe the process of economic policy-making.
• D) deal with economic hypotheses that are not well-established laws.

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Definitions:

Corporate Taxes

Government levies placed on the earnings or profits of businesses.

Economic Environment

The total of economic factors, such as employment, income distribution, and investment opportunities, that influence the behavior of consumers and businesses.

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, which raised U.S. import tariffs on thousands of goods, leading to significant trade reductions worldwide.

Trade Restrictions

Measures implemented by governments to regulate or limit international trade, including tariffs, quotas, and embargoes.