Which of the following is a normative economic statement?

Which of the following is a normative economic statement?
 a. The unemployment rate for the United States is currently 5.4 percent.
  b. The inflation rate in the United States is too high.
  c. An increase in the price of a good will reduce the amount purchased.
  d. Higher profits in an industry will attract more entrepreneurs into the industry.

QUESTION 2

Select the normative statement that completes the following sentence: If the minimum wage is raised:
 a. cost per unit of output will rise.
  b. workers will gain their rightful share of total income.
  c. the rate of inflation will increase.
  d. profits will fall.

QUESTION 3

Which of the following is a normative statement?
 a. The deduction for state taxes cost the federal government 100 billion per year.
  b. Taxpayers in North Carolina pay state taxes which are above the national average.
  c. Twenty-two states use a lottery to raise state taxes.
  d. Congress is considering the president's tax plan to increase taxes which is a fair plan.

QUESTION 4

Which of the following is an example of a normative economic statement?
 a. The inflation rate in the United States decreased from 4 percent last year to 3 percent this year as a result of lower energy prices.
  b. The economy grew at an annual rate of 5 percent during the first quarter of this year.
  c. If two automobile companies merge, it is likely that the price of automobiles will rise.
  d. An increase in international trade benefits some workers but hurts others.
  e. The minimum wage should be increased so that low income workers can afford to keep up with the cost of living.

QUESTION 5

Normative economics is:
 a. usually incorrect.
  b. a statement of fact.
  c. the analysis of what is.
  d. the study of what ought to be.
  e. free of value judgments.