Which of the following is true regarding a normative statement?
i.It uses the ceteris paribus assumption.
ii.It is a value judgment.
iii.It accounts for opportunity costs.
A) i and iii
B) ii and iii
C) i only
D) ii only
E) i, ii, and iii

Question

Quizplus · Accepted Answer

A normative statement is a value judgment, as it deals with what should or ought to be, rather than what is. It does not use the ceteris paribus assumption, as it is unrelated to the other factors that may affect a situation. It may or may not account for opportunity costs, depending on the specific statement. Therefore, only statement ii is true regarding a normative statement.

Which of the Following Is True Regarding a Normative Statement