Which of the following is a normative statement?
A)An increase in taxes will cause higher unemployment.
B)An increase in tariffs will increase the domestic prices paid by consumers.
C)Income should be redistributed from the top 2% of wage earners to the lower income brackets.
D)Running government budget deficits leads to higher market interest rates.

Question

Which of the following is a normative statement?
A)​An increase in taxes will cause higher unemployment.
B)​An increase in tariffs will increase the domestic prices paid by consumers.
C)​Income should be redistributed from the top 2% of wage earners to the lower income brackets.
D)​Running government budget deficits leads to higher market interest rates.

Quizplus · Accepted Answer

Normative statements express a value judgment or opinion and suggest what ought to be done. Option C is a normative statement because it states what should be done with income distribution. Option A and D are positive statements that describe cause and effect relationships without making value judgments. Option B is also a positive statement that describes the impact of an economic policy without making a judgment about whether it is good or bad.

Which of the Following Is a Normative Statement