Which of the Following Is an Example of a Normative,as

question 1

Multiple Choice

Which of the following is an example of a normative,as opposed to positive,statement?

• A)Following the most recent recession,the economy is recovering at a slower than usual pace.
• B)To stimulate the economy during the most recent recession,the federal government increased spending.
• C)In response to the most recent recession,the federal government extended the duration of unemployment benefits.
• D)The federal government's responses to the most recent recession were insufficient.

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Definitions:

Edgeworth Box

A diagram used in economics to show the distribution of resources and the potential gains from trade between two individuals in a pure exchange economy.

Contract Curve

The contract curve represents a set of efficient allocations in the Edgeworth Box, where no participant could be made better off without making another participant worse off.

Pareto Optimal

A condition or situation in which it is impossible to make one party better off without making another party worse off, reflecting an optimal distribution of resources.

Initial Endowment

In economic theory, refers to the initial quantities of various assets or goods that an individual or entity possesses.