7. An example of a normative statement is:

Choose the best answer.

A. The rate of unemployment is 4 percent.

B. A high rate of economic growth creates more jobs for the country.

C. The federal government spends half of its budget on national defense.

D. Everyone in the country needs to be covered by national health insurance.

8. An important determinant of the price elasticity of demand is the:

A. importance in household budgets.

B. level of technology.

C. quantity of the good supplied.

D. extent of government regulation.

9. An important determinant of the price elasticity of demand is the:

A. time period.

B. price of related goods.

C. level of technology.

D. quantity of the good supplied.