An example of a normative economic statement is:
A) The price of wheat is too low.
B) The current low price of wheat is the result of increased worldwide supply.
C) When the price of wheat falls, the quantity of wheat purchased rises.
D) When the price of wheat falls, the cost of wheat-based products falls.

Question

Quizplus · Accepted Answer

A normative economic statement reflects an opinion or value judgment about how things ought to be in the economy. Option A reflects such an opinion that the price of wheat should be higher than its current level. The other three options are positive economic statements that describe the relationship between variables without expressing any subjective judgment.

An Example of a Normative Economic Statement Is