Normative vs. Positive Statements in Economics

Steps:

• Define normative statements as subjective opinions or judgments on what ought to be, unlike positive statements which are objective facts.
• Examine each choice for factual description versus value-laden interpretation.
• Identify the option implying a behavioral judgment tied to emotions rather than verifiable causes.
• Select A as it reflects a subjective consumer reaction, not a neutral fact.

Why A is correct:

• Normative statements express opinions about behavior or desirability; A judges consumer fear as a cause, involving subjective panic rather than objective data.

Why the others are wrong:

• B states a factual labor demand, a positive economic cause.
• C describes an objective supply disruption from borders, positive.
• D reports a measurable cost increase, positive and verifiable.

Final answer: A