A normative statement is one that
A) is based on the law of averages.
B) applies only to microeconomics.
C) applies only to macroeconomics.
D) is based on value judgments.

Question

Quizplus · Accepted Answer

A normative statement is based on value judgments and involves making subjective statements about how things ought to be rather than describing how things actually are. It is different from a positive statement, which describes what is actually happening. Therefore, option D is correct.

A Normative Statement Is One That