Which of the following is an example of a normative, as opposed to positive, statement?

• A. The government should increase the minimum wage to improve living standards.
• B. Raising the minimum wage may result in higher unemployment among low-skilled workers.
• C. The current minimum wage is \$7.25 per hour.
• D. An increase in the minimum wage leads to higher labor costs for businesses.

Answer: (A)

Verified step by step guidance

1. Understand the difference between positive and normative statements: Positive statements describe the world as it is and can be tested or validated with data, while normative statements express opinions or what ought to be and involve value judgments.
2. Review each statement to determine if it is testable (positive) or opinion-based (normative):
3. Identify that 'The government should increase the minimum wage to improve living standards' is a normative statement because it uses the word 'should' and expresses a value judgment about what ought to happen.
4. Recognize that the other statements are positive because they describe facts or cause-effect relationships that can be tested or verified with data.
5. Conclude that the normative statement is the one recommending a policy action based on a value judgment, which is the first option.