Which of the following statements is an example of normative economic analysis?
A) Pollution regulations have raised the cost of production for energy companies.
B) As the wage rate increases, companies are hiring fewer workers.
C) Improvements in technology have reduced the time needed to manufacture automobiles.
D) Tablet computers should be manufactured in countries that do not restrict internet access to their citizens.

Question

Quizplus · Accepted Answer

Normative economic analysis involves value judgments or opinions about what ought to be, rather than what is. Statement D, suggesting where tablet computers "should" be manufactured based on internet access policies, is an example of a normative statement because it reflects a judgment or opinion.

Which of the Following Statements Is an Example of Normative