Which of the Following Is a Normative Statement

question 103

Multiple Choice

Which of the following is a normative statement?

• A) The sky is blue.
• B) The sky is green with pink polka dots.
• C) Points on the production possibilities frontier (PPF) are efficient.
• D) Points outside the PPF are unattainable with current resources.
• E) We should strive to push the PPF outward.

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Definitions:

Monopolist

An individual or entity that has the exclusive control or possession of the supply or trade in a commodity or service, allowing them to manipulate the market.

Selling Price

Selling price is the amount of money that a seller is willing to accept in exchange for a good or service it provides to buyers.

Marginal Cost

The extra expense resulting from the manufacture of an additional unit of a product or service.

Social Cost

The cost to society as a whole due to an activity, including both direct costs incurred and indirect effects (such as environmental damage or health impacts).