Question

Which of the following is an example of a normative statement?

• A. If you consume this good, you will be better off.
• B. To make the good available to more people, a lower price should be set.
• C. A lower price for a good causes people to want to buy more of that good.
• D. A higher price for a good causes people to want to buy less of that good.

Answer 1

Answer: (B)

To make the good available to more people, a lower price should be set.

A normative statement explains what should be base of the subject according to the belief through valued judgement that describes the fairness of the subject on public policy.
Therefore, availability of the goods at a reasonable rate in the economy is a valued judgement based on the belief that it will bring economic welfare.