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