Which of the Following Is a Normative Statement

question 173

Multiple Choice

Which of the following is a normative statement?

• A) The United States has a comparative advantage compared to the European Union in the production of wheat.
• B) The main reason why the United States has a trade deficit with China is because China's trade practices are unfair.
• C) Both these statements are normative.
• D) Neither of these statements is normative.

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Definitions:

Gross Monthly Income

The total amount of income earned in a month before taxes and deductions.

Compounded Monthly

Interest or returns on an investment are calculated and added to the principal amount every month.

Amortized

Refers to the process of paying off debt over time in equal installments of principal and interest.

Compounded Monthly

A method of interest calculation where the interest earned each month is added to the principal, thus earning more interest in the following month.