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which of the following is an example of normative economic statement

by Pasquale Nitzsche Published 3 years ago Updated 2 years ago

Normative economics. An example of a normative economic statement is as follows: The price of milk should be $6 a gallon to give dairy farmers a higher living standard and to save the family farm. This is a normative statement, because it reflects value judgments.

An example of a normative economic statement is: "The government should provide basic healthcare to all citizens." As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what "should" be.

Full Answer

What are some examples of normative economics?

What is Normative Economics?

  • Examples of Normative Economics. The regulation of oil prices by the government helps to keep inflation in check. ...
  • Origin of Normative Economics. Normative economics first originated from “old-style welfare economics,” which is a simplified version of Pigou’s Economics of Welfare.
  • Prominent Normative Economists. ...
  • Normative Economics vs. ...
  • Related Readings. ...

What are some examples of positive and normative statements?

What Are Some Examples Of Positive And Normative Economic Statements? Inefficient monopolies have been found. Gambling stocks have a higher return on investment than other types of investments. In the case of inferior goods, wealth and demand are inversely correlated. As interest rates rise, house prices fall.

What are some examples of positive economic statements?

Taking A Look At Some Examples Of Positive Economics

  • A fall in earnings will prompt an ascent famous for possessing name grocery store nourishments
  • The chances that the administration raises the assessment on lager, this will prompt a fall in benefits of the brewers.
  • The rising cost of unrefined petroleum on world markets will prompt an expansion in cycling to work

What is normative economics?

Difference between Positive and Normative Economics

Parameters Positive Economics Normative Economics
Meaning A part of economics grounded on informat ... A part of economics grounded on values, ...
Nature Illustrative Dictatorial
Outlook Objective Subjective
Deals with What actually is? What has to be?

What is an example of a normative statement?

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.

Which of the following is an example of normative economic statement quizlet?

Which of the following is an example of a normative statement? A high rate of economic growth is good for the country.

Which is a normative economic statement?

Normative economic statements are those statements that express an opinion or judgement. They cannot be proven and do not contain facts. Often the words 'ought,' and 'should' are found in these types of statements. In contrast, positive economics are based on facts and evidence, and can be proven true or false.

Which of the following is a normative economic statement ECON quizlet?

Which of the following is a normative economic statement? The government should increase spending during times of economic recession. According to economic theory, how do people make decisions? They make decisions based on their own self-interest.

Which of the following is a normative economic statement gasoline?

Which of the following is a normative economic statement? The current high price of gasoline is the result of strong worldwide demand. The price of gasoline is too high. When the price of gasoline rises, the quantity of gasoline purchased falls.

Which of the following is a normative microeconomic statement quizlet?

Which of the following is a normative microeconomic statement? Government should lower the taxes paid by small businesses.

What is a normative statement in economics quizlet?

Normative statements are statements which cannot by supported or refuted as they are value judgements, i.e. Opinions, about how economies and markets should work. Economists tend to be interested in both positive and normative economics.

Which of the following describes a normative statement?

A normative statement is one that makes a value judgment. Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct.

What is a normative statement quizlet?

Normative Statement. Are opinion based (don't say in an exam) or "valued base" statements. A normative statement is an expression that something is right or wrong so often includes the words ought, should or better. You just studied 15 terms! 1/15.

Which is an example of a positive statement?

Positive statements are thus the opposite of normative statements. Positive statements are based on empirical evidence. For examples, "An increase in taxation will result in less consumption" and "A fall in supply of petrol will lead to an increase in its price".

What is a normative question?

Normative questions are about what is allowed or what is good. These questions should not be confused with conceptual questions or descriptive questions (see below). In most cases normative questions implies philosophical (not empirical) research.May 3, 2018

Which of the following is an example of positive as opposed to normative statement?

Which of the following is an example of a positive, as opposed to normative, statement? When the minimum wage is increased, unemployment is a predictable consequence.

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