Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct. (d) Reducing inequality should be a major priority for mixed economies. Question: Which of the following is a normative statement? Select the normative statement that completes the following sentence: If the minimum wage is raised rapidly, then a. inflation increases. Positive statements are more descriptive using facts to make statements. b. D)The taxes on cigarette and alcohol should be increased. A) Consumers will buy more gasoline over the Christmas holiday even if the price of gas is 10 cents higher than it was during the Thanksgiving holiday. which of the following are characteristics of an effectively-worded strategic vision statement. B) Incomes grow more rapidly in high-tax states than low-tax states. Response Feedback: A normative statement cannot be tested or validated; it is a matter of opinion. Lower taxes would result in a 13% increase in consumption spending. Which of the following is a normative macroeconomics statement? b. B) Incomes grow more rapidly in high-tax states than low-tax states. Positive Statement. Which of the following is an example of a normative statement? Turkey has a comparative advantage in cloth; Mexico has a comparative advantage in, Turkey has a comparative advantage in baskets; Mexico has a comparative advantage in. C)If the price of gasoline increases, people will probably buy less. The only normative statement from the answer choices is “The multimillion dollar B­1 bombers are a waste of tax money.” The other statements can be tested and validated. A. University tuition rates are rising. Question 5 Which of the following statements is normative? a. Which of the following is a normative statement? a. (b) Most transitional economies have experienced problems of failing output and rising prices over the past decade. One in every five children in the United States is living in poverty . In the instance aboce, it is the author's opinion that in developed society income inequality should be minimised. Course Hero is not sponsored or endorsed by any college or university. They generally suggest a mindset that certain things should happen in order for the world to be better. d. unemployment will rise. Reducing tax rates on the wealthy would be good for the country. C. If the national saving rate were to increase, so would the rate of economic growth. Response Feedback: A normative statement cannot be tested or validated; it is a matter of opinion. Question 5 Which of the following statements is normative? A normative statement is a statement that stresses an opinion or belief that cannot be readily tested. Which of the following is a normative statement? Lower taxes would result in lower revenues. What is one thing that economists generally agree on? (2) Last year, the price of chicken was $6 per pound and the price of fish was $7 per pound. 99) _____ A) Only a is a positive statement, b, c and d are normative statements. C) People would be better off if government expenditures were higher. A higher price for a good causes people to want to buy less of that good. These are objective statements. Although people often disagree about positive statements, such disagreements can ultimately be resolved through investigation. (A) A consumer will buy from the cheapest market (B) All businessmen wish to buy at low price and sell at high price (C) A private firm will try to maximize its profits (D) The larger the stock of money with a person, the lower is the utility that he derives from it. A. 28 percent of Canadian adults have a bachelor's degree. Which of the following statements is a positive statement? b. workers will gain their rightful share of total income. Economists tend to stay away from normative statements. which of the following is a normative economic statement? An increase in the price of cameras will decrease the number of cameras sold. what does the normative approach ask regarding the lifespan? They are subjective rather than objective because they involve value judgment about what is right and what is wrong. a. A. to distinguish between positive and normative statements B. to solve disagreements about the desirable extent of income equality C. to choose the correct political opinion among many competing ones D. to make forecasts Answer: D 18. 15. A. Normative Statement: A normative statement is concerned with the value judgments about a situation and looking if it is desirable or undesirable on the basis of that. Which of the following statements is a positive economic statement? A normative statement is one that makes a value judgment. B. Which of the following is a normative statement? Which of the following is a normative statement? which of the following is an example of a normative, as opposed to positive, statement? There is another category of assertions, however, for which investigation can never resolve differences. To say that workers have right to a certain part of total income entails a value judgement. c. Congress ought to pass law X. d. The president should veto law X. Which of the consequences above are positive statements and which are normative statements? which of the following is a microeconomic statement? Law X is a good piece of legislation. For example, the unemployment rate in India in 2017 was 7.1%. Between these two countries, Turkey has the absolute advantage in both goods. A normative statement is one that involves a value judgment. What is one thing that economists generally agree on? If an economist argues that all countries gain from trade, what reasoning is, Suppose that a single person working in Mexico can produce either 20 yards of cloth or 80, baskets, and that a single person working in Turkey for the same length of time can produce either. Economists assume people are motivated by. D. Provincial governments should pay for the first two years of university at public institutions. Which of the following is a normative statement? Answer A normative statement explains what should be base of the subject according to the belief through valued judgement that describes the fairness of the subject on public policy. c. Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. The only normative statement from the answer choices is “The multimillion dollar B­1 bombers are a waste of tax money.” The other statements can be tested and validated. A)An output gap can be either expansionary or contractionary. (a) Planned economies allocate resources via government departments. Moral claims are a type of normative claim. C. The average income of a university graduate exceeds that of the average high school graduate. (c) There is a greater degree of consumer sovereignty in market economies than planned economies. Which of the following is a normative statement? The price of candy bars is $2.25 each. 36) Which of the following is a normative statement? The easiest way to discern normative statements from positive statements is to whether the statement is a fact or opinion. A “claim” is statement that asserts something that could be either true or false. c. The social security system is a good system and it deserves to be preserved as it is. We ought to do more to help the poor. D) Congress is considering the president's tax plan to increase taxes which is a fair plan. In the instance aboce, it is the author's opinion that in developed society income inequality should be minimised. D. Provincial governments should pay for the first two years of university at public institutions. People who engage in dangerous personal behavior impose … D) People will buy less butter at $1.50 per pound than they will at $1 per pound. Difference between positive economics and normative economics . rationally. specific normative events are also called ________. 97) _____ A) The price of gasoline is too high. Which of the following statements is then TRUE? In both countries, the opportunity costs of producing cloth and baskets are the same. Unlike positive statements, which depend on objective data analysis, normative statements are more concerned with “what should be” rather than facts or causal relationships. a. Here are some examples of normative statements in economics: We ought to do more to help the poor. Normative statements are statements based on opinions about what should happen. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. D) When governments increase income tax rates, people work less. The central bank should increase the nation's money supply. c. profits will fall. C) Twenty-two states use a lottery to raise state taxes. Society faces a short-run trade-off between inflation and unemployment. Popcorn and soda are sold in movie theaters. Which of the following is a normative statement? c. Congress ought to … Lower taxes would result in lower tax revenues for the government. 148. This preview shows page 3 - 4 out of 4 pages. (c) There is a greater degree of consumer sovereignty in market economies than planned economies. Which of the following statements has been drawn by inductive method? A 2% increase in foreign investment in Fiji would increase Fiji’s economic growth by 0.5%. which of the following is a true statement. d. Society ought to require welfare recipients to look for jobs. Society should take measures to prevent people from engaging in dangerous personal behavior. C) People would be better off if government expenditures were higher. Which of the following is a ‘Normative Statement’? a. B)Structural unemployment has increased. 148. d. All of the above are normative statements. Thus, option “a” is correct. B) Taxpayers in North Carolina pay state taxes which are above the national average. a. B. 15 yards of cloth or 30 baskets. 2. Here are some examples of normative statements in economics: 1. A DESCRIPTIVE claim is a claim that asserts that such-and-such IS the case. C. Candy bars are more expensive than newspapers. B. Normative statements express value-based judgement on how a situation should be . A) The deduction for state taxes cost the federal government $100 billion per year. B) To achieve efficiency, governments should prevent monopoly in markets. Which of the following is a normative statement? Which is a normative statement? Reducing unemployment is more important than reducing inflation. A normative statementis one that makes a value judgment. Which of the following is a normative statement? which of the following statement is incorrect about the mission? A decrease in the price of digital cameras will decrease the demand for camera film. C) Unemployment increases during a recession. Normative statements are subjective statements – i.e. The federal government should raise taxes on wealthy people. A reduction in the rate of money growth will reduce the rate of inflation. A normative statement is concerned with the value judgments about a situation and looking if it is desirable or undesirable on the basis of that. they carry value judgments. B) When the price of gasoline rises, the quantity of gasoline purchased falls. b. (b) Most transitional economies have experienced problems of failing output and rising prices over the past decade. Which of the following is an example of a normative, as opposed to positive, statement? A. Which of the following is an example of a normative statement? Which of the following is a normative statement? A) A decrease in price leads to an increase in quantity consumed. Taxes should be higher. d. An increase in minimum wages will increase unemployment. Law X is a good piece of legislation. Personal income taxes should be higher. B. Which of the following is a positive, rather than a normative, statement? teenage unemployment is too high. 28 percent of Canadian adults have a bachelor's degree. Which of the following is a normative statement A An increase in the price of. Which of the following is a normative statement? Popcorn and soda are sold in movie theaters. Which of the following is a normative economic statement. Normative economics expresses ideological judgments and ideal states related to a condition, event, action, or behavior. Therefore, reduction of inequality in the economy in a valued judgement on the belief that it will establish peace and equality in the economy. Which of the following is a normative statement? There is another category of assertions, however, for which investigation can never resolve differences. Law X will reduce national income. (1) Which of the following is a normative statement? a. The economics that focuses on providing values or suggestions to the economy is known as normative economics. Positive statements are more descriptive using facts to make statements. c. The Federal Reserve should reduce the rate of money growth. a. Economists assume people behave. Therefore, the unemployment rate should be lowered is a valued judgement based on the belief that it will bring economic welfare. Quiz: Self-Test Quiz - Chapter 2. angel.bfwpub.com/Section/Content/default.asp?WCI=pgTool_Quiz_Preview&WCU=CRSCNT&key=1&ENTRY_ID=fb4a8c4526db4529a6adcfdd577775fa&LOR… The United States imports most of its cameras from Asia. b. A) A decrease in price leads to an increase in quantity consumed. b. A) When interest rates rise, the quantity of loanable funds demanded for new mortgages will decline. Peo… University tuition rates are rising. … Which of the following is a normative statement? B. A positive statement, on the other hand, is a factual statement. a) a higher price of oil means that people will buy less. b. If the price of a product decreases, quantity demanded increases. The price of candy bars is $2.25 each. b) Reapid rates of economic growth can lead to environmental damage c) During a recession, unemployment rates Rise d) The government should keep inflation from rising. Which of the following is a normative statement? self interest. C. The average income of a university graduate exceeds that of the average high school graduate. which of the following is a normative statement? D) People will buy less butter at $1.50 per pound than they will at $1 per pound. 97) Which of the following is a normative economic statement? Normative economics provides judgments that show the … An example of a normative economic statement is: "The government should provide basic healthcare to all citizens." b. Which of the following is a positive, rather than a normative, statement? Normative state… They can be tested or proven. Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct. Descriptive versus Normative Claims. (a) Planned economies allocate resources via government departments. Law X will reduce national income. which of the following is an example of a positive economic statement? The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. Normative statements express value-based judgement on how a situation should be . Classify each of the following statements as positive or normative. Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements… b. B) A, b, and c are positive statements and d is a normative statement. For example: Pollution is the most serious economic problem; Unemployment is more harmful than inflation; The congestion charge for drivers of petrol-guzzling cars should increase to £25; The government should increase the minimum wage to £7 per hour to reduce poverty. 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