Asked by Faustine Hudson on Jul 21, 2024
Verified
A normative economic statement:
A) is a hypothesis used to test economic theory.
B) is a statement of fact.
C) is a statement of what ought to be,not what is.
D) indicates what will occur if certain assumptions are true.
E) enables economists to test hypotheses.
Hypothesis
A theory about how key variables relate.
Normative Economic Statement
A statement that reflects an opinion, which cannot be proved or disproved by reference to the facts.
- Distinguish between positive and normative economic statements.
Verified Answer
CB
Carolyn BentleyJul 23, 2024
Final Answer :
C
Explanation :
A normative economic statement involves expressing an opinion or value judgment about what should happen, based on ethical or ideological principles. It is subjective and cannot be tested or proven true or false. It contrasts with positive economic statements that describe what is happening in the economy and can be tested empirically.
Learning Objectives
- Distinguish between positive and normative economic statements.
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