Which of the Following Is a Normative Statement

question 31

Multiple Choice

Which of the following is a normative statement?

• A)A reduction in export taxes on petroleum would result in higher wages.
• B)The higher is the level of taxes,the higher are wage demands.
• C)The higher is the level of taxes,the lower is consumption spending.
• D)A free- trade agreement between two countries will result in an increase in trade.
• E)Tuition fees should be waived for low- income students.

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Definitions:

Fixed Components

Parts of a budget or costs that remain constant regardless of the level of production or business activity.

Direct Materials Cost

The cost of raw materials that are directly traceable to the manufacturing of a product.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.

Insurance Premiums

Regular payments made to an insurance company to maintain insurance coverage for health, life, property, or other policies.