Which of the following is an example of a normative statement?

• A. The price of gasoline rose by 10% last year.
• B. The unemployment rate is currently 5%.
• C. Government should increase the minimum wage to reduce poverty.
• D. A decrease in taxes leads to higher consumer spending.

Answer: (C)

Verified step by step guidance

1. Understand the difference between positive and normative statements: Positive statements describe facts or cause-and-effect relationships and can be tested or validated, while normative statements express opinions or value judgments about what ought to be.
2. Review each statement to determine if it is testable (positive) or opinion-based (normative):
3. For example, "The price of gasoline rose by 10% last year" is a positive statement because it can be verified with data.
4. "The unemployment rate is currently 5%" is also positive because it reports a measurable fact.
5. "Government should increase the minimum wage to reduce poverty" is normative because it expresses a recommendation or opinion about what should happen.
6. "A decrease in taxes leads to higher consumer spending" is positive as it suggests a causal relationship that can be tested.