PRC-3 · Chapter 9 · Question 23 of 45
A statement such as 'The government ought to increase taxes on the wealthy to reduce inequality' is based on value judgments and cannot be scientifically tested. This is known as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Normative economic statement
Explanation
Normative statements express opinions, ethics, or value judgments about what 'ought to be', unlike positive statements which are factual and testable.
More Nature and Scope of Economics MCQs
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