Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which of the following is an emotional statement according to Normative Economics?

1. The economy should prioritize healthcare.

2. Unemployment rates are rising.

3. Prices are increasing steadily.

4. Labor productivity is improving.

The correct answer is: The economy should prioritize healthcare.

The statement "The economy should prioritize healthcare" is an emotional statement in the context of normative economics because it expresses a value judgment about what ought to happen in the economy. Normative economics focuses on opinions and subjective assessments about what policies or actions should be taken, often reflecting personal beliefs, ethics, or societal values. In this case, advocating for the prioritization of healthcare indicates a viewpoint that values health and well-being over other potential economic priorities. This is directly related to normative economic discussions, which involve opinions about how things should be rather than how they are. In contrast, the other statements present factual observations or data about the economy. For example, mentioning that unemployment rates are rising provides a statistical assertion without implying a preference or value judgment. Similarly, statements about prices increasing steadily or improvements in labor productivity convey objective information, making them characteristic of positive economics, which seeks to describe and explain economic phenomena without suggesting what actions should be taken.