Which of the Following Is NOT a Normative Economic Statement

question 46

Multiple Choice

Which of the following is NOT a normative economic statement?

• A) People over the age of 75 should not be allowed to drive cars.
• B) Teenagers are responsible for most driving fatalities.
• C) The price of petrol is too high.
• D) States should reduce the tax on heating fuel oil during the winter.
• E) We don't spend enough money on anti-smoking campaigns.

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Definitions:

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the net identifiable assets.

Voting Stock

Shares that give the stockholder the right to vote on matters of corporate policy making and the election of the board of directors.

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.