Which of the following is a normative economic statement?
A) If the government increases spending, unemployment will fall.
B) The government should increase spending during times of economic recession.
C) If banks create more money, unemployment will decrease.
D) If the price of gasoline rises, car pooling will increase.

Question

Quizplus · Accepted Answer

A normative statement is a statement that expresses a value judgment about whether a situation is desirable or undesirable. Option B is a normative statement because it suggests what the government should do during times of economic recession. Option A and C are positive statements because they state what will happen if certain actions are taken. Option D is also a positive statement because it states what is likely to happen if the price of gasoline rises.

Which of the Following Is a Normative Economic Statement