Which of the following is a normative statement in economics ?
Correct answer: D. The government should concentrate on reducing unemploymentSend Money Overseas
- A. More spending by the government reduces poverty
- B. Higher taxes lead to less desire to work
- C. The Pakistan's economy is growing fast relative to other SAARC members
- D. The government should concentrate on reducing unemploymentSend Money Overseas
Explanation
A normative statement expresses a value judgment or recommendation, signaled here by “should.” The other statements are positive claims that can be tested against economic evidence.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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