They generally suggest a mindset that certain things should happen in order for the world to be better. Gasoline prices ought to be lower than they are now. The statement can be tested, amended or rejected based on available evidence. b. Positive statements are fact-based, but normative statements are based on opinions. normative statements on the other hand express a value judgment about whether a situation is desirable or undesirable. a. C. MAUT is a noncompensatory decision model. D) Congress is considering the president's tax plan to increase taxes which is a fair plan. Easy examples includes statements such as "inequality is bad" or "genders should be paid the same salary". For this to be helpful we need to say something about normative claims. The price of gasoline is too high. c. The social security system is a good system and it deserves to be preserved as it is. A normative statement is a statement that stresses an opinion or belief that cannot be readily tested. C. If the national saving rate were to increase, so would the rate of economic growth. b. a reduction in the rate of money growth will reduce the rate of inflation. 1. a. Which of the following is a normative statement? A tax increase will increase unemployment. a. Thus, option “a” is correct. (c) There is a greater degree of consumer sovereignty in market economies than planned economies. Law X will reduce national income. Descriptive versus Normative Claims. Both positive and normative economic statements are required in order to create the policies of a country, region, industrial sector, institution, or business. Read the text below and four statements regarding the text. c. The federal government should increase the production of biofuels. (1) Which of the following is a normative statement? Fact – Value 4. 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. The minimum wage is supported by unions. (b) Most transitional economies have experienced problems of failing output and rising prices over the past decade. 97) Which of the following is a normative economic statement? (a) Planned economies allocate resources via government departments. A reduction in the rate of money growth will reduce the rate of inflation. Large government deficits cause an economy to grow more slowly B. A higher price for a good causes people to want to buy less of that good. a. A. 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. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. Jan 17, 2012 . B. Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements… D. When the price of … 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. Reducing tax rates on the wealthy would be good for the country. Which of the following statements is positive, which is normative, and which can be tested? Lower taxes would result in lower tax revenues for the government. Which of the following is a normative economic statement? I think it is Normative Economics Matt. b. Which of the following statements is normative? a. a) a higher price of oil means that people will buy less. Which of the following is a normative statement? Empirical – Normative 2. Law X is a good piece of legislation. A normative statement is one that makes a value judgment. b) retired professionals spend less than working professionals. The current high price of gasoline is the result of strong worldwide demand. Previous question Next question Get more help from Chegg . X: The minimum wage should be high enough that families will not live in poverty. 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? Explanation: Please note: Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence. Application of Economics Application of Economics Economics Mcqs. Which of the following statements are true about ethical relativism? Lower taxes would result in a … 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 “claim” is statement that asserts something that could be either true or false. 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. Profit - Loss Which of the following is correct? c) retired professionals are more generous tippers than working professionals. 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. Society faces a short-run trade-off between inflation and unemployment. (X points)Which of the following statements about the MAUT approach to choice is true? 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