Which Is an Example of a Normative Economic Statement

question 62

Multiple Choice

Which is an example of a normative economic statement?

• A) Consumer spending is nearly two-thirds of total GDP.
• B) Increased government spending might lead to higher interest rates.
• C) The government should increase spending on education.
• D) Increased education spending could lead to higher test scores.

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Definitions:

Cognition-focused Theorists

Scholars and psychologists who emphasize the role of cognitive processes in understanding behavior and mental states.

Modeling

A learning process where individuals learn by observing and replicating others' behaviors, attitudes, or emotional expressions.

Early Childhood Trauma

involves distressing experiences that occur during the early years of life, significantly impacting one's development and psychological health.

Unconscious Feelings

Emotions and desires not within the immediate awareness of the individual, often influencing behavior according to psychodynamic theories.