Which of the following is a normative economic statement?
A)Government has grown too large and should be reduced.
B)There has been an increase in the rate of inflation.
C)Government is subject to the same rules as all other institutions.
D)The money supply grew by 3% last year.

Question

Quizplus · Accepted Answer

A normative economic statement is a statement that expresses an opinion, belief, or value judgment about what ought to happen or what is desirable. Option A is expressing an opinion that the government has grown too large and should be reduced, which is a normative statement. The remaining options are positive economic statements that describe factual situations without expressing an opinion or judgment.

Which of the Following Is a Normative Economic Statement