Which of the Following Is a Normative Statement

question 314

Multiple Choice

Which of the following is a normative statement?

• A) The Gross Domestic Product is the dollar value of all goods and services produced in a country in a year.
• B) Fiscal policy is determined by the Congress and the president.
• C) Tax cuts ought to be enacted for the good of the economy.
• D) Monetary policy is determined by the Federal Reserve System.

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Definitions:

Short-Run Supply

The total quantity of goods and services that producers are willing and able to sell at current prices in a short-term period, often influenced by fixed production capacities.

Long-Run Supply

The total amount of a product or service that is available to the market from all producers over a long period, when all inputs can be adjusted.

Purely Competitive

An idealized market structure in which there are many buyers and sellers, no barriers to entry or exit, and perfect information, leading to prices being determined by supply and demand.

Market Supply Curve

A graphical representation showing the total quantity of a good that sellers are willing and able to sell at various prices, holding all else constant.