Which of the following is a normative economic statement?
A) The poverty rate hit a new high last year and income distribution also worsened.
B) Health care accounts for roughly a third of total spending in the economy.
C) The government needs to revamp the Social Security program to make it sustainable.
D) Retail sales are expected to continue on their downward trend in the next three quarters.

Question

Quizplus · Accepted Answer

A normative economic statement involves making a value judgment or expressing an opinion about what should be done. Statement C expresses an opinion about what the government should do to address the issue of Social Security sustainability. Statements A, B, and D are descriptive economic statements that simply provide information without expressing an opinion or value judgment.

Which of the Following Is a Normative Economic Statement