'Government should increase expenditure on social services to benefit the poor'. Which one of the following represent the correct reason that establishes that the above given statement is a normative statement?

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · June 2013
'Government should increase expenditure on social services to benefit the poor'. Which one of the following represent the correct reason that establishes that the above given statement is a normative statement?
(A) It states the facts as they are
(B) It passes a value judgment
(C) It states that there is a direct relationship between public expenditure and poverty alleviation
(D) It states that poverty cannot be removed by market forces.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) It passes a value judgment.

Topics: Business Economics

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