For this to be helpful we need to say something about normative claims. To say that workers have right to a certain part of total income entails a value judgement. Society faces a short-run trade-off between inflation and unemployment. teenage unemployment is too high. A) When interest rates rise, the quantity of loanable funds demanded for new mortgages will decline. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. A) A decrease in price leads to an increase in quantity consumed. a. D) Congress is considering the president's tax plan to increase taxes which is a fair plan. 2. D) People will buy less butter at $1.50 per pound than they will at $1 per pound. A 2% increase in foreign investment in Fiji would increase Fiji’s economic growth by 0.5%. Normative economics provides judgments that show the … Positive Statement. c. The Federal Reserve should reduce the rate of money growth. b. workers will gain their rightful share of total income. A normative statement is a statement that stresses an opinion or belief that cannot be readily tested. Economists assume people are motivated by. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. A. Question: Which of the following is a normative statement? C)If the price of gasoline increases, people will probably buy less. Select the normative statement that completes the following sentence: If the minimum wage is raised rapidly, then a. inflation increases. Which of the following is a ‘Normative Statement’? (a) Planned economies allocate resources via government departments. B) Incomes grow more rapidly in high-tax states than low-tax states. a. 148. An increase in the price of cameras will decrease the number of cameras sold. These are objective statements. Which of the consequences above are positive statements and which are normative statements? (2) Last year, the price of chicken was $6 per pound and the price of fish was $7 per pound. 97) Which of the following is a normative economic statement? a. Which of the following statements is a positive statement? Turkey has a comparative advantage in cloth; Mexico has a comparative advantage in, Turkey has a comparative advantage in baskets; Mexico has a comparative advantage in. A) The deduction for state taxes cost the federal government $100 billion per year. (b) Most transitional economies have experienced problems of failing output and rising prices over the past decade. A) A decrease in price leads to an increase in quantity consumed. 15. Which of the following is a positive, rather than a normative, statement? (A) A consumer will buy from the cheapest market (B) All businessmen wish to buy at low price and sell at high price (C) A private firm will try to maximize its profits (D) The larger the stock of money with a person, the lower is the utility that he derives from it. Difference between positive economics and normative economics . Positive statements are more descriptive using facts to make statements. Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements… Course Hero is not sponsored or endorsed by any college or university. Economists assume people behave. Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct. Question 5 Which of the following statements is normative? what does the normative approach ask regarding the lifespan? For example, the unemployment rate in India in 2017 was 7.1%. a. Quiz: Self-Test Quiz - Chapter 2. angel.bfwpub.com/Section/Content/default.asp?WCI=pgTool_Quiz_Preview&WCU=CRSCNT&key=1&ENTRY_ID=fb4a8c4526db4529a6adcfdd577775fa&LOR… The United States imports most of its cameras from Asia. b. Law X will reduce national income. D. Provincial governments should pay for the first two years of university at public institutions. d. Society ought to require welfare recipients to look for jobs. What is one thing that economists generally agree on? B. 99) _____ A) Only a is a positive statement, b, c and d are normative statements. specific normative events are also called ________. 15 yards of cloth or 30 baskets. 28 percent of Canadian adults have a bachelor's degree. Which of the following is a normative statement? Normative statements are subjective statements – i.e. C. Candy bars are more expensive than newspapers. In both countries, the opportunity costs of producing cloth and baskets are the same. Normative economics expresses ideological judgments and ideal states related to a condition, event, action, or behavior. We ought to do more to help the poor. Although people often disagree about positive statements, such disagreements can ultimately be resolved through investigation. They can be tested or proven. One in every five children in the United States is living in poverty . Which of the following is a normative statement? which of the following is an example of a positive economic statement? Lower taxes would result in lower revenues. a. B. A higher price for a good causes people to want to buy less of that good. Here are some examples of normative statements in economics: We ought to do more to help the poor. Classify each of the following statements as positive or normative. Peo… c. Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. 148. Positive statements are more descriptive using facts to make statements. In the instance aboce, it is the author's opinion that in developed society income inequality should be minimised. Normative statements express value-based judgement on how a situation should be . A “claim” is statement that asserts something that could be either true or false. The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. Which of the following is a normative statement? 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. Which of the following is a normative statement A An increase in the price of. 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. 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 normative statement is one that involves a value judgment. Unlike positive statements, which depend on objective data analysis, normative statements are more concerned with “what should be” rather than facts or causal relationships. rationally. 28 percent of Canadian adults have a bachelor's degree. Therefore, reduction of inequality in the economy in a valued judgement on the belief that it will establish peace and equality in the economy. Lower taxes would result in lower tax revenues for the government. Which of the following is an example of a normative, as opposed to positive, statement? which of the following is a normative statement? Economists tend to stay away from normative statements. Which of the following is a positive, rather than a normative, statement? Answer A normative statement explains what should be base of the subject according to the belief through valued judgement that describes the fairness of the subject on public policy. self interest. b. d. An increase in minimum wages will increase unemployment. b. Descriptive versus Normative Claims. A. B) A, b, and c are positive statements and d is a normative statement. An example of a normative economic statement is: "The government should provide basic healthcare to all citizens." c. Congress ought to … A normative statement is one that makes a value judgment. Response Feedback: A normative statement cannot be tested or validated; it is a matter of opinion. which of the following is a normative economic statement? Response Feedback: A normative statement cannot be tested or validated; it is a matter of opinion. Which of the following is a normative macroeconomics statement? B. (c) There is a greater degree of consumer sovereignty in market economies than planned economies. If the price of a product decreases, quantity demanded increases. 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. Therefore, the unemployment rate should be lowered is a valued judgement based on the belief that it will bring economic welfare. 36) Which of the following is a normative statement? B) When the price of gasoline rises, the quantity of gasoline purchased falls. B) Incomes grow more rapidly in high-tax states than low-tax states. C) People would be better off if government expenditures were higher. They generally suggest a mindset that certain things should happen in order for the world to be better. The central bank should increase the nation's money supply. Which of the following is a normative statement? Popcorn and soda are sold in movie theaters. b. Normative statements express value-based judgement on how a situation should be . B)Structural unemployment has increased. There is another category of assertions, however, for which investigation can never resolve differences. which of the following is a true statement. Which of the following is a normative statement? Which of the following is a normative statement? Which of the following is a normative statement? c. The social security system is a good system and it deserves to be preserved as it is. Which of the following is a normative statement? Gasoline prices ought to be lower than they are now. … Which of the following is a normative statement? Which of the following is a normative statement? University tuition rates are rising. Society should take measures to prevent people from engaging in dangerous personal behavior. Question 5 Which of the following statements is normative? Which of the following is a normative statement? Lower taxes would result in a 13% increase in consumption spending. The federal government should raise taxes on wealthy people. C. The average income of a university graduate exceeds that of the average high school graduate. b. If an economist argues that all countries gain from trade, what reasoning is, Suppose that a single person working in Mexico can produce either 20 yards of cloth or 80, baskets, and that a single person working in Turkey for the same length of time can produce either. Reducing unemployment is more important than reducing inflation. a. Thus, option “a” is correct. Taxes should be higher. This preview shows page 3 - 4 out of 4 pages. 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. B) Taxpayers in North Carolina pay state taxes which are above the national average. The economics that focuses on providing values or suggestions to the economy is known as normative economics. C. If the national saving rate were to increase, so would the rate of economic growth. In the instance aboce, it is the author's opinion that in developed society income inequality should be minimised. Which of the following statements is a positive economic statement? Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct. A)An output gap can be either expansionary or contractionary. Which of the following is a normative statement? There is another category of assertions, however, for which investigation can never resolve differences. Popcorn and soda are sold in movie theaters. Law X is a good piece of legislation. A normative statementis one that makes a value judgment. C) People would be better off if government expenditures were higher. 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. 97) _____ A) The price of gasoline is too high. 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