Which of the Following Is the Best Example of a Normative

question 55

Multiple Choice

Which of the following is the best example of a normative economic statement?

• A) The unemployment rate for women has been two times lower than the overall rate.
• B) Increase in competition in the car manufacturing industry will result in a price reduction for cars.
• C) A monopolist is a price maker.
• D) Stronger regulation should be applied to polluting companies.

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Definitions:

Idea Screening

The process of evaluating ideas to spot viable options, eliminating those that are less likely to succeed, before significant resources are allocated.

Consumer Products

Products intended for household or family use.

Business Products

Products that are used directly or indirectly in the operation or manufacturing processes of businesses.