Which of the Following Statements Belongs More Properly in the Field

question 4

Multiple Choice

Which of the following statements belongs more properly in the field of normative economics than positive economics?

• A)An increase in the minimum wage leads to more unemployment.
• B)The price of one Canadian dollar is $0.85 U.S.
• C)When a drought occurs,the price of vegetables tends to rise.
• D)Canadian governments should provide assistance to the auto industry.
• E)Technological change has reduced the cost of cell phone service.

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Definitions:

Service Fees

Charges for professional services provided by businesses to their customers.

Rent Expense

The cost incurred by a business to utilize property or equipment for business operations.

Revenue Closed

A term not commonly used in accounting standards. NO.

Owner's Capital

The amount of money and other assets invested in a business by its owner(s), which represents the owner’s claim against the company's assets.