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Which of the following statements would you consider to be a normative one?
  • a)
    Faster economic growth should result if an economy has a higher level of investment.
  • b)
    Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure.
  • c)
    Higher levels of unemployment will lead to higher levels of inflation.
  • d)
    The average level of growth in the economy was faster in the 1990s than the 1980s.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements would you consider to be a normative...
Normative Statements:
- Normative statements express an opinion or value judgment and cannot be proven or disproven by facts or evidence.
- They involve subjective statements about how things should be or ought to be.
Analysis of Statements:
A: Faster economic growth should result if an economy has a higher level of investment.
- This statement is a positive or descriptive statement, as it suggests a cause-and-effect relationship between investment and economic growth. It does not express an opinion or value judgment.
B: Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure.
- This statement is a normative statement because it expresses an opinion on the best approach to managing the economy. It involves a subjective judgment on the effectiveness of different policy tools.
C: Higher levels of unemployment will lead to higher levels of inflation.
- This statement is a positive or descriptive statement, as it suggests a cause-and-effect relationship between unemployment and inflation. It does not express an opinion or value judgment.
D: The average level of growth in the economy was faster in the 1990s than the 1980s.
- This statement is a positive or descriptive statement, as it presents a factual comparison of economic growth rates in different time periods. It does not express an opinion or value judgment.
Conclusion:
Based on the analysis, statement B: "Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure" is a normative statement as it expresses an opinion on the best approach to managing the economy.
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Community Answer
Which of the following statements would you consider to be a normative...
The correct answer is option 'B'.

Explanation:
A normative statement is a statement that expresses an opinion or a value judgment. It is subjective and cannot be proven or disproven by facts or data. Normative statements are based on personal beliefs, values, and preferences and are often used to influence or persuade others.

In option 'B', the statement "Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure" is a normative statement because it expresses an opinion about the best way to manage the economy. It suggests that changing interest rates is preferable to using taxation and government expenditure, but it does not provide any objective evidence or data to support this claim.

Key Points:
- Normative statements express opinions or value judgments.
- They are subjective and cannot be proven or disproven by facts or data.
- Normative statements are based on personal beliefs, values, and preferences.
- Option 'B' expresses an opinion about the best way to manage the economy.
- It suggests that changing interest rates is better than using taxation and government expenditure, but it does not provide any objective evidence or data to support this claim.
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Which of the following statements would you consider to be a normative one?a)Faster economic growth should result if an economy has a higher level of investment.b)Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure.c)Higher levels of unemployment will lead to higher levels of inflation.d)The average level of growth in the economy was faster in the 1990s than the 1980s.Correct answer is option 'B'. Can you explain this answer?
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Which of the following statements would you consider to be a normative one?a)Faster economic growth should result if an economy has a higher level of investment.b)Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure.c)Higher levels of unemployment will lead to higher levels of inflation.d)The average level of growth in the economy was faster in the 1990s than the 1980s.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements would you consider to be a normative one?a)Faster economic growth should result if an economy has a higher level of investment.b)Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure.c)Higher levels of unemployment will lead to higher levels of inflation.d)The average level of growth in the economy was faster in the 1990s than the 1980s.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements would you consider to be a normative one?a)Faster economic growth should result if an economy has a higher level of investment.b)Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure.c)Higher levels of unemployment will lead to higher levels of inflation.d)The average level of growth in the economy was faster in the 1990s than the 1980s.Correct answer is option 'B'. Can you explain this answer?.
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