[Solved] Which phrase is a typical indicator of a normative economic statement? — Ans: "The government should provide free education to all." | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Which phrase is a typical indicator of a normative economic statement?

A"The GDP of India increased by 6% last year."

B"The fiscal deficit was 4% of GDP in the last fiscal year."

C"The inflation rate is measured by the Consumer Price Index."

D"The government should provide free education to all."

Step-by-Step Solution

Step 1: Identify key indicators of normative statements
Normative economics involves value judgments and often uses words like 'should', 'ought to', or 'must'.
Step 2: Analyze the options
Only the statement about providing free education uses 'should', indicating a prescriptive opinion. Other statements are factual and measurable.
Final Answer:
The government should provide free education to all. → Option D
Quick Check:
Normative economics = prescriptive statement ✅

Quick Trick: Spot words like 'should' or 'must' to identify normative statements.

Common Mistakes:

MISTAKES

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