Which of the Following Is an Example of a Normative

question 118

Multiple Choice

Which of the following is an example of a normative question?

• A) How will an increase in the minimum wage affect teenaged workers?
• B) How will an increase in the price of gasoline affect taxi drivers?
• C) Should the government provide free prescription drugs to senior citizens?
• D) What fraction of an income- tax cut will be spent on consumer goods?

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Definitions:

Revenues

The sum of revenue a company earns from selling products or providing services in a given timeframe.

Decentralized

Refers to the distribution of functions, powers, people, or things away from a central location or authority.

Consolidated

Combined financial statements that present the assets, liabilities, and operating results of parent companies and their subsidiaries as a single entity.

Diversified

A risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce risk.