"The Unemployment Rate Should Be Higher" Is a Normative Statement

question 237

True/False

"The unemployment rate should be higher" is a normative statement.

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Definitions:

Law Of Diminishing Returns

An economic principle stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Fixed Factor

A resource in the production process that remains constant, regardless of the level of output or production over a certain time period.

Total Product Curve

A graphical representation showing the output of a firm in relation to a single input while holding other inputs constant.

Marginal Product

The additional output produced as a result of adding one more unit of a particular input, keeping other inputs constant.