Which of the Following Is a Normative Economic Statement

question 115

Multiple Choice

Which of the following is a normative economic statement?

• A)Lower income tax rates would yield a larger federal government deficit.
• B)The federal budget deficit has increased every year for the last twenty years.
• C)Lower income tax rates will generate greater income tax revenue to the government.
• D)Income tax rates should be lower because that will increase government revenue.

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Definitions:

Encoding Specificity

The principle suggesting that memory is most effective when information available at encoding is also present at retrieval.

Related Categories

Groups or classes that share common characteristics or are associated in some way.

Meaning

The significance, purpose, or understanding derived from words, symbols, events, or actions.

Serial Position Effect

The cognitive bias that results in better recall of items at the beginning and end of a list than those in the middle.