Which of the following is a normative economic statement?
A) Congress should increase the legal minimum wage.
B) An increase in the legal minimum wage would cause unemployment to increase.
C) An increase in the legal minimum wage would cause unemployment to decrease.
D) An increase in the legal minimum wage would lead to more equality in the distribution of income.

Question

Quizplus · Accepted Answer

Normative economic statements are based on opinions or beliefs about what ought to be. Option A is a normative statement because it expresses a suggestion or opinion about what should be done, rather than stating a fact or prediction.

Which of the Following Is a Normative Economic Statement