Which of these statements is an example of normative economics?
A) The Americans with Disabilities Act reduced employment opportunities for the disabled.
B) Rent controls reduce the housing stock.
C) Workers pay the majority of corporate taxes in the form of lower wages.
D) The government should not have bailed out the domestic automobile market.

Question

Quizplus · Accepted Answer

Normative economics deals with what should or ought to be, rather than what is. Option D states a value judgment on whether the government should have bailed out the domestic automobile market, making it a normative statement. The other options are all positive statements, describing what is or what might be.

Which of These Statements Is an Example of Normative Economics