Which element is a key characteristic of a normative statement?

A key characteristic of a normative statement is that it makes value judgments. Normative statements reflect opinions, beliefs, or preferences about what ought to be. They often involve subjective interpretations of social policies, economic outcomes, or moral considerations, allowing individuals to express what they believe should happen in a society or economy.

For example, a statement like "The government should increase the minimum wage" contains an implicit value judgment about fairness, equity, and economic policy objectives.

This fundamental distinction sets normative statements apart from positive statements, which focus on objective truths and empirical data, discussing facts about the world without injecting personal beliefs or ideals. Positive statements aim to describe the economic reality as it stands—what is, what could happen, or what can be supported through evidence and observation.