Which of the Following Statements Belongs More Properly in the Field

question 61

Multiple Choice

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

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

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Definitions:

Processing Department

A segment of a manufacturing facility where goods undergo part of the production process.

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, blending old and new stock costs.

Cost Per Equivalent Unit

A calculation used in process costing that determines the cost of producing a single equivalent unit of production, taking into account both completed and partially completed goods.

Materials Cost

The cost associated with the raw materials and components required for the manufacture of products.