Which of the following is a normative economic statement?
A) The unemployment rate for the United States is currently 5.4 percent.
B) The inflation rate in the United States is too high.
C) An increase in the price of a good will reduce the amount purchased.
D) Higher profits in an industry will attract more entrepreneurs into the industry.

Question

Quizplus · Accepted Answer

A normative economic statement expresses an opinion or a value judgment about what ought to be. Statement B expresses an opinion that the current inflation rate is too high, making it a normative statement. The other statements are positive statements that describe what is or what might be.

Which of the Following Is a Normative Economic Statement