Which of the Following Contains Only Normative Statements

question 175

Multiple Choice

Which of the following contains only normative statements?

• A)​The birth rate is reduced as economies urbanize, but that also leads to a decreased average age of developing countries' populations.
• B)​An increase in the price of corn will decrease the amount of corn purchased.However, it will increase the amount of wheat purchased.
• C)​A decrease in the price of butter will increase the amount of butter purchased, but that would be bad because it would increase Americans' cholesterol levels.
• D)​None of the above contain only normative statements.

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Definitions:

User Cost

The cost of using a durable good over time, considering depreciation and the opportunity cost of not investing funds elsewhere.

Economic Depreciation

A measure of the decrease in value of an asset over time due to use, wear and tear, and obsolescence.

Marginal Product

The increase in output that arises from an additional unit of input, holding all other inputs constant.

Labor

The human effort, both physical and mental, used in the production of goods and services.