A Level Economics (9708)•9708/12/O/N/22

Explanation
Identifying the Normative Statement Steps:
- Recall that positive statements describe facts verifiable by evidence, while normative statements express opinions or judgments.
- Examine each option for factual claims versus value-based assertions.
- Identify words like "most serious" that imply subjective evaluation.
- Select the option that relies on opinion rather than objective prediction.
Why B is correct:
- Normative statements involve value judgments; "most serious" is subjective, not empirically verifiable like economic laws.
Why the others are wrong:
- A: Positive; subsidy effects follow supply curve shifts from economic theory.
- C: Positive; defines normal goods by income elasticity >0 per demand law.
- D: Positive; predicts behavioral response via incentive structures in labor economics.
Final answer: B
Topic: Economic methodology
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