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Which of the following is a normative economic statement? Multiple Choice A) The poverty rate hit a new high last year and income distribution also worsened. B) Health care accounts for roughly a third of total spending in the economy. C) The government needs to revamp the D) Social Security program to make it sustainable. E) Retail sales are expected to continue on their downward trend in the next three quarters.

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Answer:

The government needs to revamp the Social Security program to make it sustainable.

Explanation:

Normative economics consists in the belief in the normalization of market events through interventions in legislation. Among the options, the only alternative that denotes a normative character is that states that the government needs to renew the Social Security Program to make it sustainable. The other alternatives have more informational character - not normative.

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