Which of the following statements is a normative as opposed to a positive economic statement?
A)Consumer spending generates more jobs.
B)If the price of gasoline goes up, people buy less.
C)Labor unions should be allowed to organize in every industry.
D)Government intervention in markets is common in many countries.

Question

Quizplus · Accepted Answer

The statement "Labor unions should be allowed to organize in every industry" is normative as it suggests what should or ought to happen in the economy rather than describing what does happen (positive statement). The other three statements are positive economic statements as they describe what happens in the economy.

Which of the Following Statements Is a Normative as Opposed