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.
Correct Answer:
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