Which of the following is NOT normative economic statement?
A) The minimum wage should be eliminated so unemployment can be reduced.
B) Increases in the minimum wage cause increases in unemployment.
C) The inflation rate should fall to increase individuals' well being.
D) Taxes on cigarettes should be increased to reduce smoking.

Question

Quizplus · Accepted Answer

Option B is a positive statement because it describes a cause-and-effect relationship between the minimum wage and unemployment. It does not offer an opinion or value judgment. Instead, it is based on empirical evidence that has been observed in many instances. The other three options are normative statements because they express an opinion or value judgment about what should or should not occur. These statements are subjective and based on personal preferences or beliefs.

Which of the Following Is NOT Normative Economic Statement