Which of the statements below is primarily normative in nature? a. The distribution of income in the United States should be more equal than it is. b. The inequality of income that exists in the United States is partly caused by an unequal distribution of wealth. c. There is an unequal distribution of income in the United States. d. The distribution of income is more unequal in the United States than it is in Japan.

The correct answer is letter "A": The distribution of income in the United States should be more equal than it is.

Explanation:

There is a significant difference between positive and normative economic statements. Economists -in each case with different levels of objectivity- use both types of statements when discussing economic issues. Positive economics states facts and shows no signs of subjectivity. Whereas normative economics incorporates judgment of subjectivity and value. Thus, in the phrase:

"The distribution of income in the United States should be more equal than it is."

There is subjectivity bu using the modal verb "should", making it a normative statement.

answer; at prices that violate government price regulations;

answer decisions made by individual households and firms;