"The distribution of income should be determined by the government" is an example of a normative economic statement.

Question

Quizplus · Accepted Answer

This statement expresses a normative judgment about how income should be distributed, which reflects subjective values and opinions rather than objective economic facts or theories. Additionally, it implies a role for the government in implementing this normative vision, which is also a matter of political or ethical debate rather than a matter of economic science. Therefore, this statement belongs to the normative realm of economics, rather than the positive realm.

"The Distribution of Income Should Be Determined by the Government