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:

Neurotic

Relates to a psychological condition characterized by anxiety, depression, or other mental and emotional disorders, not attributed to any underlying physical cause.

Psychotic

Relating to psychosis, a mental disorder characterized by a disconnection from reality, such as hallucinations or delusions.

Childhood

The period of time in a person's life that is from birth to puberty, characterized by growth and development.

Higher Needs

In Maslow's hierarchy, these are the psychological needs that appear after basic physical needs are met, including esteem and self-actualization needs.