Which of the following statements represents normative analysis?
A)Eliminating rent controls in New York City will likely lead to greater supply of housing in the future.
B)Eliminating the minimum wage will likely lead to lower unemployment.
C)Subsidies to farmers to produce corn for ethanol will lead to a (desirable)reduced dependence on foreign oil.
D)Raising taxes on gasoline will reduce automobile traffic on our nation's highways.

Question

Quizplus · Accepted Answer

Normative analysis involves making value judgments about what is desirable or undesirable. Option C states that subsidies to farmers for producing corn for ethanol will lead to a desirable outcome of reduced dependence on foreign oil, making it a normative statement. The other options are positive analysis as they make predictions about future outcomes. Normative analysis involves making value judgments and arguing for what ought to be done, rather than what is likely to happen. In this case, the statement is arguing for subsidies to farmers to produce corn for ethanol as a desirable policy to reduce dependence on foreign oil.

Which of the Following Statements Represents Normative Analysis