Asked by
Lee’s Beauty
on Dec 12, 2024Verified
Which of the following is a normative economic statement?
A) If we doubled the size of welfare payments, we would reduce the number of homeless persons.
B) Companies should be concerned with more than just their profits.
C) An increase in spending on airport security will reduce the number of hijackings.
D) If social security were to be privatized, workers would earn a higher rate of return on their retirement contributions.
Normative Economic
An approach in economics that expresses value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal.
Welfare Payments
Government-provided financial assistance to individuals or families in need to support basic living expenses.
Homeless Persons
Individuals who do not have an adequate or permanent place to live, often lacking regular access to safe shelter.
- Distinguish between positive and normative economics.
Verified Answer
MU
Learning Objectives
- Distinguish between positive and normative economics.