Which of the following is a normative economic statement? Question 11 options: T

Question

Which of the following is a normative economic statement?

Question 11 options:

The poverty rate hit a new high last year and income distribution also worsened.

Health care accounts for roughly a third of total spending in the economy.

The government needs to revamp the Social Security program to make it sustainable.

Retail sales are expected to continue on their downward trend in the next three quarters.

The poverty rate hit a new high last year and income distribution also worsened.

Health care accounts for roughly a third of total spending in the economy.

The government needs to revamp the Social Security program to make it sustainable.

Retail sales are expected to continue on their downward trend in the next three quarters.

Explanation / Answer

Answer: 3rd option.

Opinion based statement which can’t be tested is a normative statement.

This is the statement which is completely subjective. No one can prove it with some statistical data or calculations – there is no definite data which establishes the fact that social security could be sustained by revamping. Therefore, this is opinion based and normative.

All the other statements are not normative but positive, because all these have definite data for proving.

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