Select the normative statement that completes the sentence: If wages rise more rapidly than productivity:
A) profits will fall.
B) workers will earn 3/4 of GDP.
C) the rate of inflation increases.
D) policymakers should impose a wage ceiling.

Question

Select the normative  statement that completes the sentence: If wages rise more rapidly than productivity:
A) profits will fall.
B) workers will earn 3/4 of GDP.
C) the rate of inflation increases.
D) policymakers should impose a wage ceiling.

Quizplus · Accepted Answer

Normative statements are prescriptive and based on opinions or values, suggesting what should be done. Option D, suggesting policymakers should impose a wage ceiling, is a normative statement because it prescribes a course of action.

Select the Normative Statement That Completes the Sentence: If Wages