A Level Economics AQA Practice Exam

A normative economic statement is characterized by its subjective nature, reflecting opinions, values, or judgments rather than facts that can be objectively verified. This type of statement often involves words such as "should," "ought to," or "is better," indicating preferences or beliefs about what policies or outcomes are desirable. For instance, a statement declaring that the government should increase minimum wage to improve living standards embodies a normative perspective. It cannot be definitively proven or disproven, as it is rooted in individual values and societal goals rather than measurable, observable data. The other choices focus on objective aspects of economics, such as empirical evidence or factual statements about performance, which do not encapsulate the essence of normative statements. Recognizing this distinction helps in understanding different economic discourses, where normative statements influence policy-making and public debate based on personal or societal values.