Which of the following is a normative economic statement?
A)The U.S.rate of unemployment was lower in 2004 than it was in 1994.
B)Savings accounts earn interest,whereas checking accounts do not.
C)Congress must recognize that the growing national debt is the most serious problem that the country faces.
D)The unemployment rate increases when the percentage of the labor force without jobs increases.
E)The unemployment rate among teenagers is higher than the rate among adults.

Question

Quizplus · Accepted Answer

A normative economic statement makes a value judgment or prescribes a particular course of action. Option C calls for Congress to take action regarding the national debt, making it a normative statement. The other options are either descriptive statements (A, D, E) or statements of fact (B).

Which of the Following Is a Normative Economic Statement