Which of the following is an example of a normative

Question

Which of the following is an example of a normative - as opposed to a positive - statement?
A) The discount rate is the interest rate the Central Bank charges banks to borrow funds.
B) The UK income tax rate increases with the amount of income earned.
C) The government should increase the tax on petrol.
D) The UK unemployment rate was around 8 per cent in 2013.

Quizplus · Accepted Answer

A normative statement expresses a value judgment about whether a situation is desirable or undesirable. Option C is a value judgment about what the government ought to do, rather than a factual statement about what the government is currently doing or what has happened in the past. Options A, B, and D are all positive statements, which describe the world as it is or was, rather than expressing a subjective opinion about what should be done.