Example: An increase in the minimum wage increases unemployment among teenagers. Normative statements contain a value judgment. They contain words such as " have to ," " ought to ," " must ," " should " or nonquantifiable adjectives such as "important," that cannot be objectively measured.
A normative statement is one that cannot be tested or verified and is based on a value judgment. For example, stating that the price of housing is 'too expensive' is a normative one as it is based on a value judgement and cannot be tested to be 'true' or 'false'.
Which of the following represent a normative economic statement? The government ought to lower taxes so people have more money.
Answer and Explanation: The correct answer is D. You should eat less chocolate.
Normative statement refers to "what ought to be" or it offers advice. Hence reducing inequality should be a major priority for mixed economies is a normative statement. Was this answer helpful?
A normative statement is an expression that something is right or wrong so often includes the words ought, should or better. This is a statement that cannot be tested. It is a value judgment.
An example of a normative statement is: A high rate of economic growth is good for the country.
which of the following is a positive economic statement? Positive economic statements are statements of fact that imply no value judgment. Notice that the correct response merely stated what would happen if minimum wage went up and made no statement about whether that was good or bad.
An example of a positive economic statement is, "An increase in the price of a product causes consumers to purchase more of that product."
A normative economic statement refers to "what ought to be" or it makes an assessment of an activity and offers advice. Hence, the federal minimum wages should be raised to $ 4. 50 per hour is a normative statement.
To check the inflation, RBI should restrict the money supply is suggesting us a measure to make the situation desirable that is keep a check on inflation and thus the statement is normative in nature.
Normative economics aims to determine people's desirability or the lack thereof to various economic programs, situations, and conditions by asking what should happen or what ought to be. Therefore, normative statements typically present an opinion-based analysis in terms of what is thought to be desirable.
"Normal" refers to that which conforms to norms, so while norms are the rules that guide our behavior, normal is the act of abiding by them. "Normative," however, refers to what we perceive as normal, or what we think should be normal, regardless of whether it actually is.
Normative economics aims to determine people's desirability or the lack thereof to various economic programs, situations, and conditions by asking what should happen or what ought to be. Therefore, normative statements typically present an opinion-based analysis in terms of what is thought to be desirable.
Normative theories define “good” decisions as ones that are most likely to provide the decision maker with desired outcomes (Edwards, 1954; Yates, 1990).
For instance, "the world would be a better place if the moon were made of green cheese" is a normative statement because it expresses a judgment about what ought to be. Normative statements are characterised by the modal verbs "should", "would", "could" or "must".