Which of the Following Is a Normative Question

question 237

Multiple Choice

Which of the following is a normative question?

• A) Why do gasoline prices increase between Memorial Day and Labor Day?
• B) What will happen to gasoline consumption if the federal tax on gasoline is eliminated?
• C) To reduce the regressive nature of the gasoline excise tax, should the portion of the gasoline excise tax paid by high-income individuals be increased?
• D) How will oil exploration be affected if the government subsidizes oil producers?

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Definitions:

Financial Status

Financial status refers to the current financial condition of an individual or entity, characterized by factors like liquidity, solvency, and overall financial health.

Cash Flows

The overall volume of financial exchanges made into and from an organization, directly impacting its ability to cover short-term obligations.

Operating Activities

Operating activities relate to the primary activities of a business involving the production and delivery of goods and services, and are reflected in the cash flows from operations in financial reporting.

Financing Activities

Transactions with creditors and investors used to fund a company through borrowing or selling equity.