Answer:
C. An increase in subsidies to farmers will boost agricultural production.
Explanation:
Normative economic statements are an approach to economics that analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe a course of action.
Characteristics of normative statements:
-It inquires what ought to be.
-It make a decision on any economic issues without analysis.
-It does not make any assumption while carring out economic analysis.
-Its results is applied to specified issues.
-Normative economics was supported and led by neo classical economists.
Examples of Normative statements:
-Pollution is the most serious economic problem
-Unemployment is more harmful than inflation
T-he congestion charge for drivers of petrol-guzzling cars should increase to £25
-The government should increase the minimum wage to £7 per hour to reduce poverty.
-The government is right to introduce a ban on smoking in public places.
-The retirement age should be raised to 70 to combat the effects of our ageing population.
-Resources are best allocated by allowing the market mechanism to work freely
-The government should enforce minimum prices for beers and lagers sold in supermarkets and off-licences in a bid to control alcohol consumption
-An increase in subsidies to farmers will boost agricultural production.
