Which of the Following Is a Normative Statement

question 36

Multiple Choice

Which of the following is a normative statement?

• A)Reducing unemployment is more important than reducing inflation.
• B)An increase in the price of lumber is followed by a decrease in the construction of new houses.
• C)A government deficit will reduce unemployment and cause an increase in prices.
• D)Queen Elizabeth II is the wealthiest woman in the world.
• E)The sun rises in the west and sets in the east.

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Definitions:

Net Income

The amount of earnings remaining after all expenses and taxes have been subtracted from total revenue.

Return Ratio

Financial metrics used to evaluate the efficiency or profitability of an investment relative to its cost.

Earnings Per Share

A financial metric that measures the profitability of a company on a per-share basis, calculated by dividing the company's net income by the number of outstanding shares.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue, often referred to as the bottom line.