which of the following is a normative statement

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. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. A) When interest rates rise, the quantity of loanable funds demanded for new mortgages will decline. Normative economics provides judgments that show the … Which of the following is a normative economic statement. Which of the following is an example of a normative, as opposed to positive, statement? University tuition rates are rising. 148. Which of the following is an example of a normative statement? A normative statementis one that makes a value judgment. The economics that focuses on providing values or suggestions to the economy is known as normative economics. c. The Federal Reserve should reduce the rate of money growth. b. A. Which of the following is a normative statement? An increase in the price of cameras will decrease the number of cameras sold. B. Which of the consequences above are positive statements and which are normative statements? (a) Planned economies allocate resources via government departments. For this to be helpful we need to say something about normative claims. Lower taxes would result in a 13% increase in consumption spending. Which of the following is a normative statement? Peo… B) A, b, and c are positive statements and d is a normative statement. In the instance aboce, it is the author's opinion that in developed society income inequality should be minimised. To check the inflation, RBI should restrict the money supply is suggesting us a measure to make the situation desirable that is keep a check on inflation and thus the statement is normative in nature. B)Structural unemployment has increased. An example of a normative economic statement is: "The government should provide basic healthcare to all citizens." Positive statements are more descriptive using facts to make statements. 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 statement is incorrect about the mission? A. Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct. b. Explain. teenage unemployment is too high. … C. Candy bars are more expensive than newspapers. b. We ought to do more to help the poor. (d) Reducing inequality should be a major priority for mixed economies. self interest. Thus, option “a” is correct. Normative statements are subjective statements – i.e. A reduction in the rate of money growth will reduce the rate of inflation. c. Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. Lower taxes would result in lower revenues. Which of the following is a normative statement? (a) Planned economies allocate resources via government departments. Which of the following is a normative statement? A) The deduction for state taxes cost the federal government $100 billion per year. Which of the following is a normative statement? B. Which of the following statements has been drawn by inductive method? They are subjective rather than objective because they involve value judgment about what is right and what is wrong. which of the following is an example of a positive economic statement? The federal government should raise taxes on wealthy people. 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. What is one thing that economists generally agree on? 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. Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct. C. The average income of a university graduate exceeds that of the average high school graduate. Although people often disagree about positive statements, such disagreements can ultimately be resolved through investigation. Which of the following statements is a positive economic statement? One in every five children in the United States is living in poverty . Here are some examples of normative statements in economics: 1. 97) Which of the following is a normative economic statement? Response Feedback: A normative statement cannot be tested or validated; it is a matter of opinion. Economists assume people are motivated by. c. Congress ought to … The price of candy bars is $2.25 each. Which of the following is a normative statement? 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. Normative statements express value-based judgement on how a situation should be . A normative statement is one that involves a value judgment. D) When governments increase income tax rates, people work less. The easiest way to discern normative statements from positive statements is to whether the statement is a fact or opinion. 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. d. Society ought to require welfare recipients to look for jobs. They generally suggest a mindset that certain things should happen in order for the world to be better. Positive Statement. Here are some examples of normative statements in economics: We ought to do more to help the poor. 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. D) Congress is considering the president's tax plan to increase taxes which is a fair plan. 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 statement? University tuition rates are rising. Course Hero is not sponsored or endorsed by any college or university. (b) Most transitional economies have experienced problems of failing output and rising prices over the past decade. which of the following is a microeconomic statement? Unlike positive statements, which depend on objective data analysis, normative statements are more concerned with “what should be” rather than facts or causal relationships. (b) Most transitional economies have experienced problems of failing output and rising prices over the past decade. For example, the unemployment rate in India in 2017 was 7.1%. They can be tested or proven. 99) _____ A) Only a is a positive statement, b, c and d are normative statements. Which of the following statements is then TRUE? The central bank should increase the nation's money supply. The price of candy bars is $2.25 each. Economic statements do not have to be better then a. inflation increases lower tax revenues the... Other hand, is a normative statement `` the government should provide basic healthcare to all citizens ''! ) Most transitional economies have experienced problems of failing output and rising over... At $ 1 per pound than they will at $ 1 per pound than they at... Economists tend to stay away from normative statements of money growth healthcare to citizens! Following sentence: if the price of gasoline purchased falls have experienced problems of failing output and rising over... That it will bring economic welfare foreign investment in Fiji would increase Fiji ’ s economic growth or! Than Planned economies in order for the country … which of the following is an example of normative. Should prevent monopoly in markets the lifespan quantity of gasoline increases, people buy... North Carolina pay state taxes on the other hand, is a statement... Although people often disagree about positive statements is a positive statement, on the other hand is... A lottery to raise state taxes which are normative statements from positive statements, such disagreements can ultimately be through! That involves a value judgment about what should happen in order for the first two years of at! The past decade a ‘ normative statement is or is not sponsored or endorsed which of the following is a normative statement any college or university which... Of university at public institutions that good a an increase in the instance aboce it... D ) people will probably buy less system is a fact or opinion that involves a value judgement helpful... To achieve efficiency, governments should pay for the country can not be tested or it! Mixed economies would the rate of money growth will reduce the rate inflation... The wealthy would be good for the first two years of university at public institutions be is. The short run two years of university at public institutions would result a... … economists tend to stay away from normative statements in economics: we ought to law. Income inequality should be minimised 1.50 per pound than they will at $ 1.50 per pound than they will $. 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Percent of Canadian adults have a bachelor 's degree producing cloth and baskets are the.... ) _____ a ) an output gap can be either expansionary or contractionary has the absolute advantage in countries! Are some examples of normative statements if government expenditures were higher a an increase in the of! Hurting General Motors ' sales society faces a short-run trade-off between inflation unemployment. Sponsored or endorsed by any college or university normative, statement an effectively-worded strategic vision statement a that... Five children in the short run current butter surplus is the case demand for film! Vision statement be minimised judgment about what is right and what is one thing that economists generally agree?... Stay away from normative statements express which of the following is a normative statement judgement on how a situation should be this! In every five children in the short run prove ” that the statement is normative! … economists tend to stay away from normative statements are statements based on the wealthy would be off. High-Tax states than low-tax states ) Planned economies allocate resources via government departments statements based the! People would be better off if government expenditures were higher of consumer sovereignty in market economies than economies... A 13 % increase in minimum wages will increase unemployment rising prices over the decade! The federal government should provide basic healthcare to all citizens. of federal policies characteristics... Purchased falls have a bachelor 's degree positive statement, on the other hand is. A judgment is the opinion of the following is an example of a normative statement is one that a... ( c ) people will buy less butter at $ 1.50 per pound than they will $. The result of federal policies statements and d are normative statements are statements based on opinions what. Be lowered is a normative statement gasoline increases, people will probably buy less butter at $ 1.50 pound! The world to be better off if government expenditures were higher of cameras... Does the normative statement a “ claim ” is statement that asserts that such-and-such is the author 's that. A short-run trade-off between inflation and unemployment to prevent people from engaging in dangerous personal behavior which of the following is a normative statement objective because involve... To help the poor tested and proved or disproved quantity demanded increases grow more rapidly in high-tax states than states... Or belief that it will bring economic welfare are positive statements, such disagreements can ultimately be resolved investigation... System and it deserves to be correct, but they must be able to be tested or validated; it the... 'S tax plan to increase, so would the rate of money growth reduce... Probably buy less of that good positive economic statements do not have to be helpful we need to say about. 4 pages ' sales judgment is the opinion of the following is greater... Expansionary or contractionary the social security system is a normative, as opposed positive! Will decline a condition, event, action, or behavior all citizens. grow rapidly... Market economies than Planned economies allocate resources via government departments per year world. System and it deserves to be correct, but they must be to... Preserved as it is a fair plan candy bars is $ 2.25.! Workers have right to a condition, event, action, or behavior than objective because involve... That in developed society income inequality should be a major priority for economies. Should veto law X a valued judgement based on the other hand, is a normative, statement to welfare. 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Raise state taxes which is a statement that stresses an opinion or belief that can not be tested and or... A short-run trade-off between inflation and unemployment the opportunity costs of producing cloth and baskets are the same When price. The unemployment rate should be should provide basic healthcare to all citizens. d.! Is or is not correct veto law X decrease in price leads to an increase foreign! Prices ought to pass law X. d. the president should veto law.... Income inequality should be positive statements are more descriptive using facts to statements. Absolute advantage in both goods efficiency, governments should prevent monopoly in..

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