Which of the following is an example of normative economics?
A)The minimum wage has not kept pace with inflation.
B)The minimum wage is an important tool in fighting poverty and should be increased.
C)The minimum wage can create higher unemployment for teens and unskilled workers.
D)A higher minimum wage is expected to increase the price of a fast-food cheeseburger.

Question

Quizplus · Accepted Answer

Normative economics deals with value judgments and opinions about what should be done to address economic issues. Option B expresses an opinion that the minimum wage should be increased to fight poverty, making it an example of normative economics. The other options are descriptive statements that provide information about the relationship between the minimum wage and economic outcomes and do not express any value judgments.

Which of the Following Is an Example of Normative Economics