Which of the Following Is a Normative Statement

question 81

Multiple Choice

Which of the following is a normative statement?

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

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Definitions:

Constant-Growth

A valuation model assuming a steady rate of dividend growth for a stock.

Required Return

The minimum expected return investors demand for a particular investment, reflecting its risk level.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Internet Companies

Businesses that operate primarily on the internet, offering services or products through digital platforms, often focusing on technology, e-commerce, or social media.