Which of the following statements belongs more properly in the field of normative economics than positive economics?
A)When a drought occurs,the price of vegetables tends to rise.
B)Technological change has reduced the cost of cell phone service.
C)The price of one Canadian dollar is $0.85 U.S.
D)Canadian governments should provide assistance to the auto industry.
E)An increase in the minimum wage leads to more unemployment.

Question

Quizplus · Accepted Answer

Normative economics deals with value judgments and what ought to be done. The statement "Canadian governments should provide assistance to the auto industry" is a normative statement because it expresses a value judgment about what actions should be taken by the government. The other statements are all positive statements, dealing with how things are, and not making a value judgment about what actions should be taken.

Which of the Following Statements Belongs More Properly in the Field