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. The government should reduce funding for social assistance programs. I think it is Normative Economics Matt. This is called normative reasoning, and the conclusions are called normative statements. Application of Economics Application of Economics Economics Mcqs. d. All of the above are normative statements. The statement can be tested, amended or rejected based on available evidence. c. The Federal Reserve should reduce the rate of money growth. normative statements on the other hand express a value judgment about whether a situation is desirable or undesirable. Which of the following statements is normative ? A) The deduction for state taxes cost the federal government $100 billion per year. c. The social security system is a good system and it deserves to be preserved as it is. Descriptive – Prescriptive 3. a. 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. Reducing tax rates on the wealthy would be good for the country. The current high price of gasoline is the result of strong worldwide demand. a. explain. People work harder if the wage is higher C. The unemployment rate should be lower D. Printing too much money causes inflation. A tax increase will increase unemployment. C. MAUT is a noncompensatory decision model. For example, you stated that Indonesia’s economic growth should increase to 6%. For this to be helpful we need to say something about normative claims. A. Empirical – Normative 2. Which of the following is a statement of normative economics? Answer: C. The slope of a demand curve is not the same as the price elasticity of demand. A 2% increase in foreign investment in Fiji would increase Fiji’s economic growth by 0.5%. Society faces a short-run trade-off between inflation and unemployment. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. B) Incomes grow more rapidly in high-tax states than low-tax states. 1. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. The price of gasoline is too high. d. Society ought to require welfare recipients to look for jobs. The minimum wage is good because it raises wages for the working poor. China is Australia’s largest trading partner. Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements… Although people often disagree about positive statements, such disagreements can ultimately be resolved through investigation. A) A decrease in price leads to an increase in quantity consumed. c) retired professionals are more generous tippers than working professionals. Descriptive versus Normative Claims. C. If the national saving rate were to increase, so would the rate of economic growth. A DESCRIPTIVE claim is a claim that asserts that such-and-such IS the case. Which of the following statements is a positive statement? A normative statement is one that makes a value judgment. c. The Federal Reserve should reduce the rate of money growth. D. When the price of … Moral claims are a type of normative claim. a) retired professionals should work less and get out more. The federal government should raise taxes on wealthy people. Read the text below and four statements regarding the text. b. A reduction in the rate of money growth will reduce the rate of inflation. d. The minimum wage encourages firms to substitute capital for labor. Which of the following is an example of a normative statement? c. Tariffs on imported wine will lead to higher prices for domestic wine. A tax cut will raise interest rates. C) People would be better off if government expenditures were higher. b. a) a higher price of oil means that people will buy less. A policy recommendation could be that since unemployed workers are not earning income, government should try to stimulate demand in the economy, so unemployed workers could get back to work. Easy examples includes statements such as "inequality is bad" or "genders should be paid the same salary". Law X will reduce national income. Normative Statements. Classify each of the following statements as positive or normative. Explain. (c) There is a greater degree of consumer sovereignty in market economies than planned economies. Which of the following is a ‘Normative Statement’? Which of the following is a normative statement? a. B. In this video, learn about the distinction between positive statements and normative statements, and why economists emphasize positive analysis vs. normative analysis, as well as how to identify positive statements vs. normative statements. Profit - Loss Which of the following is correct? Y: The federal minimum wage is increasing to $8.50 an hour. Positive statements are fact-based, but normative statements are based on opinions. Response Feedback: A normative statement cannot be tested or validated; it is a matter of opinion. A “claim” is statement that asserts something that could be either true or false. a. 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. D) Congress is considering the president's tax plan to increase taxes which is a fair plan. (2) Last year, the price of chicken was $6 per pound and the price of fish was $7 per pound. B. (X points)Which of the following statements about the MAUT approach to choice is true? If the price of a product decreases, quantity demanded increases. Which of the following is a normative statement? Fact – Value 4. Normative statements usually present an opinion-based analysis in terms of what is considered desirable. a. Russia to lift grain export ban. The slope measures absolute changes in price for a 1 unit change in quantity. In the following, I summarize the characteristics of the normative statement: Based on opinions, so it is subjective; Often include words … Gasoline prices ought to be lower than they are now. b. B) When the price of gasoline rises, the quantity of gasoline purchased falls. C) People would be better off if government expenditures were higher. Society faces a short-run trade-off between inflation and unemployment. Which of the following statements concerning the distinction between positive and normative economics is true? Which of the following is a normative statement? b. (1) Which of the following is a normative statement? (b) Most transitional economies have experienced problems of failing output and rising prices over the past decade. 1) Cultural difference strictly entail ethical differences 2) Cultural differences should not be equated with irresoluble moral differences 3) What appear to be cultural differences may also be differences in perspective 4) All human beings around the world agree to the same moral standards. Explanation: Please note: Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence. Which of the following statements are true about ethical relativism? b. Which of the following is an example of a normative, as opposed to positive, statement? Expert Answer . Which of the following is a positive, rather than a normative statement? Which of the following statements is normative? Jan 17, 2012 . Which of the following statements are positive in nature and which are normative? They generally suggest a mindset that certain things should happen in order for the world to be better. C. When the price of gasoline rises, the quantity of gasoline purchased falls. classify each of the following statements as positive or normative. Which of the following is a normative statement? a. (a) Planned economies allocate resources via government departments. b. b) retired professionals spend less than working professionals. a. a) 1 and 3 b) 1 and 2 c) 1, 2 and 3 d) 2, 3 and 4 Correct Answer: C 2) How does the individual come to be able to make moral decisions? d. An increase in minimum wages will increase unemployment. There is another category of assertions, however, for which investigation can never resolve differences. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. Both positive and normative economic statements are required in order to create the policies of a country, region, industrial sector, institution, or business. Which of the following statements is positive, which is normative, and which can be tested? A. B) Taxpayers in North Carolina pay state taxes which are above the national average. 97) Which of the following is a normative economic statement? Which is a normative statement? C) Twenty-two states use a lottery to raise state taxes. A) A decrease in price leads to an increase in quantity consumed. A higher price for a good causes people to want to buy less of that good. A. b. a reduction in the rate of money growth will reduce the rate of inflation. 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. c. The minimum wage reduces the number of jobs for less-skilled workers. For each letter, write the entire word True or False.. A. MAUT is a normative approach.. B. MAUT is an excellent approach in almost all multiattribute choice situations, regardless of the stakes. Previous question Next question Get more help from Chegg . Which of the statement is incorrect? 1 Answer to Which of the following economic statements are positive and which are normative? d. Society ought to require welfare recipients to look for jobs. The minimum wage is supported by unions. 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. X: The minimum wage should be high enough that families will not live in poverty. B) Incomes grow more rapidly in high-tax states than low-tax states. a. Lower taxes would result in lower tax revenues for the government. a. Positive statements are true while normative statements are false. Thus, option “a” is correct. Law X is a good piece of legislation. 97) _____ A) The price of gasoline is too high. b. Large government deficits cause an economy to grow more slowly B. Which of the following is an example of a normative statement? c. The federal government should increase the production of biofuels. Personal income taxes should be higher. Economics Mcqs for test Preparation from Basic to … Which of the following is a normative economic statement? Lower taxes would result in a … It is normative because it is based on your subjective opinion. Mcq Added by: Adden wafa. a. ) Twenty-two states use a lottery to raise state taxes cost the federal government $ billion... Answer to which of the following is an example of a product decreases, quantity demanded.. Deficits cause an economy to grow more rapidly in high-tax states than states. 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