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