Which of the Following Is a Normative Statement

question 67

Multiple Choice

Which of the following is a normative statement?

• A)Next year's inflation rate will be under 4 percent.
• B)A wheat shortage or surplus is always the result of federal government policies.
• C)Consumers will buy more gasoline over the December holiday period than they bought during the summer holiday period even if the price of gas is 10 cents a litre higher than it was during the summer.
• D)Hurricane Irma caused more damage in the United States than Hurricane Harvey.
• E)Government cuts in welfare spending impose an unfair hardship on the poor.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Operating Activities

Day-to-day actions and transactions related to running a business, such as selling products, paying wages, and purchasing inventory.

Net Income

The final financial gain of a business after removing all expenses, taxes, and costs from the gross income.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) and creditors (debt financing).