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

Question

Quizplus · Accepted Answer

A normative economic statement expresses a value judgment about what should be done, rather than what is. Choice C expresses a normative opinion about what the Canadian government should do to assist the auto industry. The other choices are positive economic statements that describe what is happening in the economy, such as changes in costs or prices.

Which of the Following Statements Belongs More Properly in the Field