Which of the following is a normative economic statement?
A)Rising global demand for coal has led to increases in the price of coal.
B)With rising mortgage rates and rising unemployment rates, the number of unsold homes has increased.
C)Toronto is considering increasing funds for light-rail development to promote the use of public transportation.
D)Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable.

Question

Quizplus · Accepted Answer

This statement involves a value judgment and presents an opinion about what should be done, hence it is a normative economic statement. A normative statement cannot be tested or proven, but it can be debated. The other choices are positive economic statements, which describe economic phenomena rather than taking a stance on how things ought to be.

Which of the Following Is a Normative Economic Statement