Which of the following is a normative economic statement?
A) Income tax revenues decreased during the recession.
B) Despite government stimulus spending, the unemployment rate remained above 9% in 2010.
C) When the price of gasoline rises, transportation costs rise.
D) The government should decrease spending on foreign aid to lower the federal deficit.

Question

Quizplus · Accepted Answer

This statement expresses a value judgment about what the government should do, rather than describing an objective fact.

Which of the Following Is a Normative Economic Statement