Which of the following is an example of a normative economic statement?
A) Incomes increase when national production increases.
B) Women should earn the same income as men.
C) When the price of a good rises, people will buy more of it.
D) The more time you spend studying, the higher your economics test scores will be.
E) The price and the quantity demanded of a good are negatively related.

Question

Quizplus · Accepted Answer

A normative economic statement is a statement that expresses an opinion or makes a value judgment about what ought to be or what should happen in the economy. Statement B is a normative statement because it expresses a moral or ethical judgment about how income should be distributed, rather than describing an economic fact or relationship. The other answer choices are all positive economic statements that describe a cause-and-effect relationship or economic principle.

Which of the Following Is an Example of a Normative