Which of the following is a normative economic statement?
A) Raising the price of new textbooks will lead students to seek more used textbooks.
B) Raising the price of new textbooks will lead students to buy fewer new textbooks.
C) Publishers should not raise the price of new textbooks.
D) The price of new textbooks will rise if transportation costs and costs of paper rise.

Question

Quizplus · Accepted Answer

A normative economic statement is an opinion-based statement that suggests what should or ought to happen. In this case, "Publishers should not raise the price of new textbooks" is a normative statement because it is an opinion about what should happen, rather than a statement of fact about what will happen. Choices A, B, and D are all positive economic statements that describe what is likely to happen in response to changes in price or costs.

Which of the Following Is a Normative Economic Statement