Which of the following represents a normative statement?
A) Incentives matter.
B) The temperature in this room is 120 degrees.
C) It is too hot in this room.
D) People will buy less butter at $1.50 per pound than they will at $1.00 per pound.

Question

Quizplus · Accepted Answer

A normative statement is a statement that expresses a value judgment about whether a situation is desirable or undesirable. Option C represents a normative statement as it expresses a judgment about the desirability of the temperature in the room. Options A and D are positive statements that describe how incentives affect behavior and how prices affect demand, respectively. Option B is a factual statement about the temperature in the room.

Which of the Following Represents a Normative Statement