"A decrease in the price of tablet computers will decrease the demand for desktop computers." This statement is an example of a normative economic statement.

Question

Quizplus · Accepted Answer

This statement is actually a positive economic statement as it describes a cause-and-effect relationship between two economic variables (price of tablet computers and demand for desktop computers) and can be tested through data analysis. A normative economic statement, on the other hand, involves a value judgment about what should or should not be, and cannot be tested through data analysis.

"A Decrease in the Price of Tablet Computers Will Decrease