Question

Which is a normative statement? a. International trade leads to expanded consumption opportunities. b. Higher expenditures on health care will reduce infant mortality rates. c. To improve our economic security, we should reduce our dependence on oil imports. d. Increased defense spending will lead to higher budget deficits.

Answer 1

Answer: The correct answer is "c. To improve our economic security, we should reduce our dependence on oil imports.".

Explanation: Normative economics is responsible for proposing recommendations, policies and actions based on subjective personal judgments or on "what should be." For this it is based on economic theory.

As you can see in the statement "To improve our economic security, we should reduce our dependence on oil imports." The expression "we should" is included indicating that it is a normative declaration.