Which of the following is an example of a normative economic statement?
A)If the money supply falls,interest rates will rise.
B)Teenage unemployment would be lower if there were no minimum wage.
C)The quantity of shirts sold increases as the price of shirts decreases.
D)The federal government's total spending should be reduced.
E)If interest rates go up,then construction activity will fall.

Question

Quizplus · Accepted Answer

This is a normative economic statement because it involves a value judgment about what the government "should" do, rather than simply describing what is likely to happen.

Which of the Following Is an Example of a Normative