A normative economic statement is:
a. a statement of fact.
b. a statement of opinion which advocates a particular position.
c. not acceptable in the economics profession.
d. the only acceptable manner to present economic information.
e. a statement based upon government-supplied information.
QUESTION 2A normative economic statement:
a. is a model used to collect data.
b. is a statement of fact.
c. is a statement of what ought to be, not what is.
d. indicates what will occur if certain assumptions are true.
QUESTION 3In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?
a. Price supports are important because America should preserve the small family farm.
b. Without price supports, the price of wheat and corn will fall by over twenty percent.
c. The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms.
d. The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in the United States.
QUESTION 4Which of the following is a normative statement?
a. A decrease in price leads to an increase in quantity consumed.
b. Incomes grow more rapidly in high-tax states than low-tax states.
c. People would be better off if government expenditures were higher.
d. People will buy less butter at 1.50 per pound than they will at 1 per pound.
QUESTION 5A positive statement is:
a. something good or desirable.
b. a call for improvement.
c. a statement of opinion.
d. a statement testable by facts.
e. a suggestion for policy.
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