Which statement is an example of normative economics?
A) The Americans with Disabilities Act reduced employment opportunities for the disabled.
B) Rent controls reduce the housing stock.
C) Workers pay the majority of corporate taxes in the form of lower wages.
D) The government should not have bailed out the domestic automobile market.

Question

Quizplus · Accepted Answer

Normative economics deals with what should be, rather than what is. Choice D is a normative statement because it expresses a value judgment about what the government should or should not have done. The other choices are positive statements about what has happened or what may happen as a result of certain policies or actions.

Which Statement Is an Example of Normative Economics