Which Is a Normative Economic Statement

question 207

Multiple Choice

Which is a normative economic statement?

• A) Tests should always be hard to ensure that students are challenged.
• B) Quantity demanded for steak will fall if the price of steak rises.
• C) Hot dogs and hot dog buns are generally complementary goods.
• D) Each of these three statements uses normative economics.

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Definitions:

Bank Statement

A document or electronic file provided by a bank summarizing transactions in an account over a certain period.

Outstanding Deposit

Refers to funds that have been deposited in a bank account but have not yet been credited or made available for use.

Outstanding Checks

Checks that have been written and recorded in the account ledger but have not yet been cashed or cleared by the bank.

Adjusted Balance

The method of calculating finance charges on a credit account by subtracting payments or credits received during the billing cycle from the balance at the end of the billing cycle.