Which of the following is a normative economic statement?
A)The price of gasoline is too high.
B)The current high price of gasoline is the result of strong worldwide demand.
C)When the price of gasoline rises, the quantity of gasoline purchased falls.
D)When the price of gasoline rises, transportation costs rise.

Question

Quizplus · Accepted Answer

A normative statement expresses an opinion or value judgment about what ought to be. Choice A expresses an opinion that the price of gasoline is too high, which is subjective and not based on empirical evidence or facts. Choices B, C, and D are positive statements that describe what is or what has happened, without making a subjective judgment.

Which of the Following Is a Normative Economic Statement