Which of the following is a normative economic statement?
A)Rising corn prices have increased the price of corn-based ethanol.
B)With rising home prices and falling mortgage interest rates, the amount of home foreclosures has decreased.
C)The federal government is considering increasing regulations on the use of fossil fuels to promote the use of wind power.
D)Farmers should not be allowed to grow and sell genetically-modified crops.

Question

Quizplus · Accepted Answer

A normative economic statement is a statement about what "should be" rather than what "is." Option D is a normative statement as it states what farmers should or should not be allowed to do. The other options are positive statements (statements describing what has happened or is currently happening) rather than normative statements.

Which of the Following Is a Normative Economic Statement