Which of the following is a normative economic statement?
A)Rising global demand for coal has led to increases in the price of coal.
B)With rising mortgage rates and rising unemployment rates, the number of unsold homes has increased.
C)The state of Texas is considering increasing funds for light-rail development to promote the use of public transportation.
D)Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable.

Question

Quizplus · Accepted Answer

Normative economics deals with opinions and recommendations on how economic policies should be formulated and implemented. Option D falls under this category as it expresses a recommendation on the patenting of drugs. The other options are positive statements as they describe the current state of affairs or the relationship between variables.

Which of the Following Is a Normative Economic Statement