Which of the Following Is a Normative Statement

question 66

Multiple Choice

Which of the following is a normative statement?

• A)The higher is the level of taxes,the lower is consumption spending.
• B)The higher is the level of taxes,the higher are wage demands.
• C)A reduction in export taxes on petroleum would result in higher wages.
• D)Tuition fees should be waived for low-income students.
• E)A free-trade agreement between two countries will result in an increase in trade.

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Definitions:

Marginal Utility

The boost in satisfaction or usefulness one gets from consuming an extra unit of any good or service.

Total Utility

The total satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.

Marginal Utility

The increase in satisfaction or value derived from the consumption of one more unit of a good or service.

Utility Schedule

A table showing the relationship between quantities of goods consumed and the utility or satisfaction derived from those quantities.