Which of the following statements expresses a normative viewpoint?

Multiple choice question for Application of Economics. Select an option, then review the explanation below.

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Significant government deficits lead to slower economic growth.Higher wages motivate individuals to increase their work effort.The unemployment rate ought to be reduced.Excessive money printing results in inflation.

Explanation

Option C is normative because it reflects a value judgment about what should be, whereas the other options are positive statements describing cause-and-effect relationships or factual claims.

Practice related questions from the same subject.

1.Two economists are debating the impact of government spending on unemployment. One claims that increasing government expenditure by 50 billion dollars would reduce unemployment by one percentage point. The other argues that the same spending would only lower unemployment by 0.1%, and even then, the effect would be short-lived. What best explains their disagreement?
2.Which of the following topics falls under the study of microeconomics?
3.What are positive statements characterized by?
4.Which of the following factors does not cause the production possibilities curve of a country to expand outward?
5.Which of the following statements about microeconomics and macroeconomics is incorrect?

Which of the following statements expresses a normative viewpoint?

Explanation

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