Question

Which of the following statements is normative?

• A. Large government deficits cause an economy to grow more slowly.
• B. People work harder if the wage is higher.
• C. The unemployment rate should be lower.
• D. Printing too much money causes inflation.

Answer 1

Answer: (C)

The unemployment rate should be lower.

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, the unemployment rate should be lowered is a valued judgement based on the belief that it will bring economic welfare.