Question 5 Which of the following statements is normative? classify each of the following statements as positive or normative. Thus, option “a” is correct. C) People would be better off if government expenditures were higher. Normative statements usually present an opinion-based analysis in terms of what is considered desirable. The statement can be tested, amended or rejected based on available evidence. C. When the price of gasoline rises, the quantity of gasoline purchased falls. China is Australia’s largest trading partner. d. Society ought to require welfare recipients to look for jobs. For this to be helpful we need to say something about normative claims. Which of the following statements is normative? a. A normative statement is one that makes a value judgment. D. When the price of … A tax cut will raise interest rates. c. The Federal Reserve should reduce the rate of money growth. 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. b) retired professionals spend less than working professionals. Which of the following statements is positive, which is normative, and which can be tested? Descriptive versus Normative Claims. Jan 17, 2012 . a. A 2% increase in foreign investment in Fiji would increase Fiji’s economic growth by 0.5%. Previous question Next question Get more help from Chegg . A higher price for a good causes people to want to buy less of that good. b. a. 97) Which of the following is a normative economic statement? C. MAUT is a noncompensatory decision model. c. The minimum wage reduces the number of jobs for less-skilled workers. c. The federal government should increase the production of biofuels. Easy examples includes statements such as "inequality is bad" or "genders should be paid the same salary". C) Twenty-two states use a lottery to raise state taxes. c) retired professionals are more generous tippers than working professionals. D) Congress is considering the president's tax plan to increase taxes which is a fair plan. Which of the following is a normative economic statement? Although people often disagree about positive statements, such disagreements can ultimately be resolved through investigation. Positive statements are true while normative statements are false. Gasoline prices ought to be lower than they are now. I think it is Normative Economics Matt. The price of gasoline is too high. Law X is a good piece of legislation. d. An increase in minimum wages will increase unemployment. They generally suggest a mindset that certain things should happen in order for the world to be better. Which of the following statements is a positive statement? Response Feedback: A normative statement cannot be tested or validated; it is a matter of opinion. a. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. It is normative because it is based on your subjective opinion. Large government deficits cause an economy to grow more slowly B. A) A decrease in price leads to an increase in quantity consumed. 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. b. Which of the following is an example of a normative statement? The minimum wage is good because it raises wages for the working poor. Which of the following statements is normative ? The minimum wage is supported by unions. The government should reduce funding for social assistance programs. For example, you stated that Indonesia’s economic growth should increase to 6%. Society faces a short-run trade-off between inflation and unemployment. Law X will reduce national income. 1 Answer to Which of the following economic statements are positive and which are normative? B. 97) _____ A) The price of gasoline is too high. Fact – Value 4. C) People would be better off if government expenditures were higher. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. A normative statement is a statement that stresses an opinion or belief that cannot be readily tested. Explanation: Please note: Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence. (2) Last year, the price of chicken was $6 per pound and the price of fish was $7 per pound. Which of the following is a normative statement? Which of the following is a statement of normative economics? This is called normative reasoning, and the conclusions are called normative statements. Which of the following is a normative statement? 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 are true about ethical relativism? B) Taxpayers in North Carolina pay state taxes which are above the national average. a. A) A decrease in price leads to an increase in quantity consumed. The current high price of gasoline is the result of strong worldwide demand. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. 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. Answer: C. The slope of a demand curve is not the same as the price elasticity of demand. Positive statements are fact-based, but normative statements are based on opinions. A) The deduction for state taxes cost the federal government $100 billion per year. Normative Statements. People work harder if the wage is higher C. The unemployment rate should be lower D. Printing too much money causes inflation. Which of the following is a normative statement? Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements… d. The minimum wage encourages firms to substitute capital for labor. Profit - Loss Which of the following is correct? A. B) Incomes grow more rapidly in high-tax states than low-tax states. Explain. Lower taxes would result in lower tax revenues for the government. Which of the statement is incorrect? In the following, I summarize the characteristics of the normative statement: Based on opinions, so it is subjective; Often include words … d. Society ought to require welfare recipients to look for jobs. (a) Planned economies allocate resources via government departments. X: The minimum wage should be high enough that families will not live in poverty. 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. The Federal Reserve should reduce the rate of money growth. a. A. b. Which of the following is an example of a normative, as opposed to positive, statement? (1) Which of the following is a normative statement? 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. 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. c. The social security system is a good system and it deserves to be preserved as it is. b. A DESCRIPTIVE claim is a claim that asserts that such-and-such IS the case. Which is a normative statement? Which of the following is an example of a normative statement? A tax increase will increase unemployment. Classify each of the following statements as positive or normative. a. Russia to lift grain export ban. B) Incomes grow more rapidly in high-tax states than low-tax states. Reducing tax rates on the wealthy would be good for the country. Empirical – Normative 2. Y: The federal minimum wage is increasing to $8.50 an hour. a) a higher price of oil means that people will buy less. 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. A “claim” is statement that asserts something that could be either true or false. explain. 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