Which of the Following Is a Normative Economic Statement

question 99

Multiple Choice

Which of the following is a normative economic statement?

• A) If the government increases spending, unemployment will fall.
• B) The government should increase spending during times of economic recession.
• C) If banks create more money, unemployment will decrease.
• D) If the price of gasoline rises, car pooling will increase.

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Definitions:

Voluntary Revocation

This term denotes a deliberate act of giving up or canceling a right, privilege, or license, usually in a legal or regulatory context.

Shareholders

Individuals or entities that own shares in a corporation, thus having partial ownership and potentially receiving dividends from profits.

Subchapter S

A section of the Internal Revenue Code that provides for a special tax status for qualifying small businesses, allowing income to be taxed at the shareholder level and not at the corporate level.

Net Capital Loss

This occurs when the total capital losses from investments exceed the total capital gains, which can sometimes be used to offset other types of income for tax purposes.