Which of the following is a normative statement?
A) An increase in consumer income will lead to increased sales of beef.
B) A decrease in the rate of unemployment will lead to upward pressure on consumer prices.
C) An increase in the income tax will cause a greater reduction in savings than an increase in the sales tax.
D) An economy with high unemployment can be worse off than an economy with high inflation.

Question

Quizplus · Accepted Answer

Normative statements are subjective and express opinions or values, suggesting how things should be. Option D is a normative statement because it evaluates the condition of an economy with high unemployment as being "worse off" compared to one with high inflation, which is a value judgment rather than an objective analysis.

Which of the Following Is a Normative Statement