The statement that "the unemployment rate will increase as the economy moves into a recession" is an example of:
A) a normative statement.
B) a microeconomic statement.
C) marginal analysis.
D) a generalization.

Question

Quizplus · Accepted Answer

The statement is a generalization as it predicts a relationship between two variables (unemployment rate and economy) in a general sense. It does not make any value judgments or recommendations (normative statement) nor does it focus on the detailed analysis of a particular market or individual behavior (microeconomic statement) or involve analyzing the benefits and costs of small incremental changes (marginal analysis).

The Statement That "The Unemployment Rate Will Increase as the Economy