Which of the following is the best example of a normative economic statement?
A) A rise in gasoline prices will cause gasoline purchases to fall.
B) The federal government should spend more on health care.
C) Raising the minimum wage will result in greater unemployment.
D) If more money is printed, then the economy's price level will rise.

Question

Quizplus · Accepted Answer

A normative economic statement is one that involves a value judgment or opinion about what ought to be done, rather than a statement of fact. Option B is a clear example of a normative statement as it expresses an opinion on what the federal government should do, rather than making a statement of fact. The other options are all positive statements that make predictions about cause and effect relationships.

Which of the Following Is the Best Example of a Normative