Which of the Following Is a Normative Statement

question 7

Multiple Choice

Which of the following is a normative statement?

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

Recognize different forms of entrepreneurship and financing mechanisms.

Identify business strategies unique to successful entrepreneurs.

Understand the principles of operant conditioning

Differentiate between types of reinforcers

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Definitions:

Cost Method

An accounting method used for investments, where the investment is recorded at its acquisition cost and adjustments are made for dividends received and changes in fair value are not recorded.

Trading Securities

Financial instruments bought and held primarily for selling them in the near term to profit from short-term price movements.

Fair Value

An estimate of the market value of an asset or liability, based on the price at which willing parties would enter into a transaction.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.