Which of the Following Statements Represents Normative Analysis

question 17

Multiple Choice

Which of the following statements represents normative analysis?

• A)Eliminating rent controls in New York City will likely lead to greater supply of housing in the future.
• B)Eliminating the minimum wage will likely lead to lower unemployment.
• C)Subsidies to farmers to produce corn for ethanol will lead to a (desirable)reduced dependence on foreign oil.
• D)Raising taxes on gasoline will reduce automobile traffic on our nation's highways.

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Definitions:

Private Cost

The costs that an individual or company incurs in the production of goods or services, excluding any externalities.

External Costs

Uncompensated costs incurred by someone who is not involved in the production or consumption of a good or service, typically relating to environmental damage or public health.

Market's Output

The total quantity of goods and services produced and offered for sale in a market during a specific period of time.

Internalized

Describes a process or value that has been incorporated within an individual's psychological framework and is reflected in their behavior or decision-making.