Which of the Following Is an Example of a Normative

question 226

Multiple Choice

Which of the following is an example of a normative economic statement?

• A) Universal access to quality health insurance is the most important domestic policy issue of our time.
• B) Extending the time in which laid-off workers are eligible to receive government unemployment compensation has increased the unemployment rate.
• C) Lowering marginal income tax rates depresses consumer spending.
• D) Prices rise when the government prints too much money.
• E) Interest rates rise when the government runs persistent budget deficits.

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Definitions:

Accountability

The principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome.

Single Task

Focusing on or dealing with only one specific task or activity at a time.