Question

Which of the following is a normative economic statement?

• A. The federal minimum wages should be raised to $\$$ $4.50$ per hour.
• B. Economics is a social science that studies human behaviour.
• C. Microeconomics deals with the behaviour of the individuals
• D. The United States spends a $\$$ $1$ trillion on national defence.

Answer 1

The correct option is A The federal minimum wages should be raised to $\$$ $4.50$ per hour.

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.