Which of the Following Is a Normative Statement

question 38

Multiple Choice

Which of the following is a normative statement?

• A)The sun rises in the west and sets in the east.
• B)A government deficit will reduce unemployment and cause an increase in prices.
• C)Reducing unemployment is more important than reducing inflation.
• D)Queen Elizabeth II is the wealthiest woman in the world.
• E)An increase in the price of lumber is followed by a decrease in the construction of new houses.

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Definitions:

Industry Expands

Refers to the growth in size or scope of a particular sector of the economy, characterized by increased output, employment, or number of businesses.

Efficiently Allocated

A situation wherein resources are distributed in such a way that maximizes the net benefits gained from their use, leaving no opportunity to make someone better off without making others worse off.

Marginal Cost

The cost incurred from producing one more unit of a good, reflecting changes in production expense with output variation.

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.