Which of the Following Is a Normative Statement

question 51

Multiple Choice

Which of the following is a normative statement?

• A) Reducing the budget deficit will also reduce the balance of trade deficit.
• B) Tariffs on imported cars result in higher prices for domestic auto consumers.
• C) A tax cut will cause higher inflation.
• D) The government should spend more to help the poor.

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Definitions:

Administrative Expenses

Costs related to the general management and administration of a business, such as salaries of executive officers and costs of the legal department.

Net Operating Income

A financial metric that shows a company's profitability from its core business operations, excluding expenses and incomes from other sources.

Planning Budget

An estimate of future revenues and expenses that serves as a financial roadmap for an organisation.

Wages And Salaries

Compensation paid to employees for their services, where wages are often hourly rates and salaries are fixed annual amounts.