The question requires us to determine a normative statement.
Explanation of Solution
The statement “government should increase the minimum wage” represents the “what should be” approach means to correct some economic situation government should act in an appropriate direction. So, this option represents a normative statement.
Thus, option “c” is correct.
Generally, economic analysis can be seen in two ways; Normative and positive. In positive economics, economic analysis help in getting the answer as exactly it is or the way it is. Such analyses have definite right or wrong answers. On the other hand, the economic analysis that tries to find the solution based on the ‘how the economy should be’ approach is considered normative economics.
Chapter 1R Solutions
Krugman's Economics For The Ap® Course
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