Economics Mcqs for test Preparation from Basic to … A. d. The minimum wage encourages firms to substitute capital for labor. Which of the following is a normative statement? The federal government should raise taxes on wealthy people. (2) Last year, the price of chicken was $6 per pound and the price of fish was $7 per pound. Easy examples includes statements such as "inequality is bad" or "genders should be paid the same salary". Large government deficits cause an economy to grow more slowly B. Descriptive – Prescriptive 3. a. a. Russia to lift grain export ban. Empirical – Normative 2. a. 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. Reducing tax rates on the wealthy would be good for the country. B. A) A decrease in price leads to an increase in quantity consumed. 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? b. 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 is an example of a normative statement? a. Personal income taxes should be higher. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. b. Read the text below and four statements regarding the text. c. The social security system is a good system and it deserves to be preserved as it is. d. Society ought to require welfare recipients to look for jobs. explain. B) Taxpayers in North Carolina pay state taxes which are above the national average. Y: The federal minimum wage is increasing to $8.50 an hour. a. Thus, option “a” is correct. (b) Most transitional economies have experienced problems of failing output and rising prices over the past decade. C) People would be better off if government expenditures were higher. Which is a normative statement? A. Gasoline prices ought to be lower than they are now. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. Classify each of the following statements as positive or normative. c. The Federal Reserve should reduce the rate of money growth. Expert Answer . Descriptive versus Normative Claims. 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. China is Australia’s largest trading partner. d. All of the above are normative statements. B. Which of the following is a normative statement? Which of the following is a normative statement? B) Incomes grow more rapidly in high-tax states than low-tax states. C) People would be better off if government expenditures were higher. a. d. An increase in minimum wages will increase unemployment. 97) Which of the following is a normative economic statement? Which of the following is an example of a normative, as opposed to positive, statement? classify each of the following statements as positive or normative. The minimum wage is good because it raises wages for the working poor. Fact – Value 4. Normative Statements. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. Which of the following statements is positive, which is normative, and which can be tested? Normative statements usually present an opinion-based analysis in terms of what is considered desirable. 1 Answer to Which of the following economic statements are positive and which are normative? a) a higher price of oil means that people will buy less. 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. 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. Which of the following is a statement of normative economics? Which of the following is a positive, rather than a normative statement? C. MAUT is a noncompensatory decision model. b. a reduction in the rate of money growth will reduce the rate of inflation. The price of gasoline is too high. A “claim” is statement that asserts something that could be either true or false. 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. When the price of … A tax increase will increase unemployment. Response Feedback: A normative statement cannot be tested or validated; it is a matter of opinion. They generally suggest a mindset that certain things should happen in order for the world to be better. Positive statements are fact-based, but normative statements are based on opinions. A higher price for a good causes people to want to buy less of that good. A) The deduction for state taxes cost the federal government $100 billion per year. c. Tariffs on imported wine will lead to higher prices for domestic wine. Profit - Loss Which of the following is correct? Which of the following is a normative economic statement? Law X is a good piece of legislation. The government should reduce funding for social assistance programs. Application of Economics Application of Economics Economics Mcqs. b. 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. Which of the following is a normative statement? 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. Jan 17, 2012 . b. c. The federal government should increase the production of biofuels. Which of the following statements is normative ? For this to be helpful we need to say something about normative claims. Society faces a short-run trade-off between inflation and unemployment. Lower taxes would result in lower tax revenues for the government. A DESCRIPTIVE claim is a claim that asserts that such-and-such IS the case. The slope measures absolute changes in price for a 1 unit change in quantity. (a) Planned economies allocate resources via government departments. Lower taxes would result in a … C. When the price of gasoline rises, the quantity of gasoline purchased falls. (X points)Which of the following statements about the MAUT approach to choice is true? A normative statement is a statement that stresses an opinion or belief that cannot be readily tested. There is another category of assertions, however, for which investigation can never resolve differences. People work harder if the wage is higher C. The unemployment rate should be lower D. Printing too much money causes inflation. Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements… Which of the following statements is normative? C. If the national saving rate were to increase, so would the rate of economic growth. Which of the following is a ‘Normative Statement’? Question 5 Which of the following statements is normative? Which of the statement is incorrect? The minimum wage is supported by unions. B) Incomes grow more rapidly in high-tax states than low-tax states. The statement can be tested, amended or rejected based on available evidence. 1. Positive statements are true while normative statements are false. b) retired professionals spend less than working professionals. The current high price of gasoline is the result of strong worldwide demand. Which of the following statements are true about ethical relativism? b. I think it is Normative Economics Matt. b. A reduction in the rate of money growth will reduce the rate of inflation. B) When the price of gasoline rises, the quantity of gasoline purchased falls. Law X will reduce national income. Answer: C. The slope of a demand curve is not the same as the price elasticity of demand. A. 97) _____ A) The price of gasoline is too high. A 2% increase in foreign investment in Fiji would increase Fiji’s economic growth by 0.5%. Which of the following statements is a positive statement? c. The minimum wage reduces the number of jobs for less-skilled workers. A tax cut will raise interest rates. Both positive and normative economic statements are required in order to create the policies of a country, region, industrial sector, institution, or business. In the following, I summarize the characteristics of the normative statement: Based on opinions, so it is subjective; Often include words … c. The Federal Reserve should reduce the rate of money growth. Mcq Added by: Adden wafa. d. Society ought to require welfare recipients to look for jobs. Which of the following statements are positive in nature and which are normative? D) Congress is considering the president's tax plan to increase taxes which is a fair plan. Although people often disagree about positive statements, such disagreements can ultimately be resolved through investigation. X: The minimum wage should be high enough that families will not live in poverty. a) retired professionals should work less and get out more. A normative statement is one that makes a value judgment. A) A decrease in price leads to an increase in quantity consumed. 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. Which of the following is an example of a normative statement? a. b. C) Twenty-two states use a lottery to raise state taxes. Moral claims are a type of normative claim. For example, you stated that Indonesia’s economic growth should increase to 6%. If the price of a product decreases, quantity demanded increases. Explain. a. normative statements on the other hand express a value judgment about whether a situation is desirable or undesirable. (c) There is a greater degree of consumer sovereignty in market economies than planned economies. (1) Which of the following is a normative statement? a. It is normative because it is based on your subjective opinion. This is called normative reasoning, and the conclusions are called normative statements. Previous question Next question Get more help from Chegg . c) retired professionals are more generous tippers than working professionals. To increase taxes which is normative, as opposed to positive, is. That stresses an opinion or belief that can not be readily tested people often disagree about statements. Can be tested, amended or rejected by referring to the available evidence which can be or. 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