Which Statement Is Normative

question 186

Multiple Choice

Which statement is normative?

• A)The minimum wage has not kept pace with inflation.
• B)The minimum wage is an important tool in fighting poverty and should be increased.
• C)The minimum wage can cause higher unemployment for teens and unskilled workers.
• D)A higher minimum wage is expected to increase the price of a fast-food cheeseburger.

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Definitions:

Consumption

The act of using goods and services by households, which is a primary component in measuring gross domestic product (GDP) in economics.

Consumer's Surplus

The disparity between what consumers are prepared and can afford to spend on a product or service and the actual amount they end up paying.

Total Amount

The complete sum or quantity of something, encompassing all parts or units counted.

Willing to Pay

The maximum amount an individual is prepared to spend to acquire a good or service.