Which is an example of a normative economic statement?
A) Consumer spending is nearly two-thirds of total GDP.
B) Increased government spending might lead to higher interest rates.
C) The government should increase spending on education.
D) Increased education spending could lead to higher test scores.

Question

Quizplus · Accepted Answer

A normative economic statement is a statement about what should be or what ought to be. Option C states that the government should increase spending on education, which is a normative statement as it involves an opinion about the desired action that the government should take. The other options are positive economic statements that describe the current state of affairs or predict future outcomes based on existing data.

Which Is an Example of a Normative Economic Statement