Which of the Following Is an Example of a Normative,as

question 52

Multiple Choice

Which of the following is an example of a normative,as opposed to positive,statement?

• A)Universal health care would be good for U.S.citizens.
• B)An increase in the cigarette tax would cause a decrease in the number of smokers.
• C)A decrease in the minimum wage would decrease unemployment.
• D)A law requiring the federal government to balance its budget would increase economic growth.

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Definitions:

Inputs

The resources used in the production process, such as labor, raw materials, and capital equipment.

Output Per Day

The total quantity of goods or services produced by an entity in a single day.

Production Function

An equation or model showing the maximum output that can be produced with a given set of inputs, expressing the relationship between inputs and outputs in the production process.

Isoquant

A curve that represents all combinations of inputs that produce the same level of output in production theory.