Which of the Following Is a Normative Economic Statement

question 58

Multiple Choice

Which of the following is a normative economic statement?

• A)The teenage unemployment rate is over 10 percent.
• B)An increase in the corporate income tax will cause the unemployment rate to increase.
• C)The costs of medical care are increasing faster than the incomes of Canadians.
• D)The teenage unemployment rate is too high.

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Definitions:

Marginal Analysis

Evaluation of the extra benefits derived from an activity versus the extra costs it incurs.

Family Business

A commercial organization in which decision-making is influenced by multiple generations of a family.

Trade Embargo

A government-imposed ban on trade with a specified country or the exchange of specific goods, often used as a political sanction.

Gasoline Falls

Presumed to refer to a reduction in gasoline prices, though not a standard economic term.