Which of the Following Is a Normative Economic Statement

question 96

Multiple Choice

Which of the following is a normative economic statement?

• A) The poverty rate hit a new high last year and income distribution also worsened.
• B) Health care accounts for roughly a third of total spending in the economy.
• C) The government needs to revamp the Social Security program to make it sustainable.
• D) Retail sales are expected to continue on their downward trend in the next three quarters.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants and used as a sweetener in food and beverages.

Price Elasticity

A gauge of the degree to which demand for a merchandise reacts to alterations in its price, showing how susceptible the amount demanded is to changes in price.

Specific Tax

Tax of a certain amount of money per unit sold.