Which of the Following Is a Normative Statement

question 41

Multiple Choice

Which of the following is a normative statement?

• A)An increase in taxes will cause higher unemployment in an economy.
• B)An increase in tariffs in a country will increase the prices paid by domestic consumers.
• C)Income should be redistributed from the top 2 percent of wage earners to the low-income group.
• D)Income should be redistributed from the top 2 percent of wage earners to the low-income group
• E)National debt imposes a burden on both current and future generations.

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Definitions:

Dictator Game Experiments

Behavioral experiments in economics where an individual (the "dictator") is given a sum of money and can choose how to split it between themselves and a second participant who has no influence over the decision.

Sense of Fairness

The natural or developed perception and understanding individuals have towards equity, justice, and impartiality within interactions and exchanges.

Dictator Game

An experimental paradigm in behavioral economics where one player, "the dictator," determines how to split an endowment between themselves and another player.

Behavioral Economists

Investigators who explore how various psychological, cognitive, emotional, cultural, and social factors determine the economic decisions of both individuals and organizations.