Which of the following is a normative economic statement?
A)The poverty rate hit a new high last year and income inequality also increased.
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

Normative economic statements express judgments about what ought to be and are subjective, involving opinions and values. Choice C, suggesting the government needs to revamp the Social Security program, is a normative statement because it reflects a judgment about what should be done.

Which of the Following Is a Normative Economic Statement