When an organization states it wants to increase output by 10%, they have stated a(n):

• A. normative statement
• B. empirical observation
• C. positive statement
• D. descriptive analysis

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the difference between types of statements in economics. A positive statement is one that can be tested or verified by evidence, describing 'what is.'
2. Step 2: Recognize that a normative statement expresses a value judgment or what ought to be, often involving opinions or goals rather than facts.
3. Step 3: Note that an empirical observation is based on actual data or evidence collected from real-world experience.
4. Step 4: Descriptive analysis involves summarizing or describing data or situations without making judgments or predictions.
5. Step 5: Since the statement 'an organization wants to increase output by 10%' expresses a goal or what the organization desires to happen, it is a normative statement.